Prime Minister Malcolm Turnbull announces Adelaide shipbuilder ASC to be split into three government-owned companies

The ASC will be split into three companies but will remain in government hands, as it preapres to become one of the busiest shipbuilding sites in the world.

SHIPBUILDER ASC will be split into three separate government-owned companies ahead of the construction of Australia’s 12 navy submarines.

Prime Minister Malcolm Turnbull has announced the ASC will be broke up into shipbuilding, submarine sustainment and infrastructure companies.

The ASC’s Osborne headquarters is poised to become one of the busiest shipbuilding sites in the world as work begins on multiple projects.

Mr Turnbull said the new arrangements would allow work to progress on the construction offshore Patrol Vessels 2018, the Future Frigates in 2020 and the Future Submarines.

The Commonwealth will also seek to acquire the State Government-owned Techport shipbuilding Multi User Facility.

“We have shipyards that do not have the capacity to undertake the scale of construction we need,’’ Mr Turnbull said.

“We need to expand ship lift capacity, we need to upgrade infrastructure. We need builders, engineers, metalworkers and technical experts to design and install this infrastructure.’’

Finance Minister Mathias Cormann said the structural separation of the ASC would be completed in 2017.

The changes would have no impact on the terms and conditions of ASC employees.

Senator Cormann said the Government had no plans to privatise any of the companies.

Defence Industry Minister Christopher Pyne said splitting up the ASC would enable the Government to simultaneously manage multiple builds.

“What it will do is create at Osborne South one of the most modern and one of the busiest shipyards in the world,’’ Mr Pyne said.

“And at Osborne North, straight across the carpark, it will establish one of the most modern and busiest submarine shipyards in the world.”

ASC chairman Bruce Carter welcomed the Government’s decision to split up the company.

“The separation of ASC into three businesses will ensure that the company is best-placed to support the future needs of Australia’s naval industry,’’ Mr Carter said in a statement.

“The last two years has seen a remarkable turnaround in Collins Class submarine availability and the Hobart Class air warfare destroyer program is now meeting its schedule milestones and we expect our improved productivity to continue.