Naval Group global boss to visit SA, Canberra on Australia trip

The global boss of French defence giant Naval Group will visit SA next month as preparations to build the Future Submarines ramp up.

Naval Group is designing the Future Submarines to replace Australia’s Collins class subs. Picture: AAP Image/Richard Wainwright

French defence giant Naval Group’s new boss will visit Adelaide next month as preparations ramp up for construction of the first Future Submarine in South Australia.

Pierre Éric Pommellet will meet with Defence Minister Linda Reynolds and top Defence Department officials when he heads to Adelaide and Canberra in February.

The Australian trip could help reset the relationship between Naval Group and Defence, which political and industry sources say has become strained amid concerns about cost and time frame blowouts for the $89.7bn project.

Mr Pommellet’s visit also comes as preparations ramp up for construction of the first submarine, to start in Port Adelaide in 2023, with Naval expected to hire about 250 people this year.

Naval Group chief executive Pierre Eric Pommellet.

Upgrades to the Osborne shipyard, where the 12 submarines will be built, are also underway.

Almost 2000 Australian defence industry businesses have registered their interest to be part of the supply chain.

Mr Pommellet had been intending to visit Australia after becoming Naval Group’s global chief executive last March but COVID-19 disrupted his plans.

“We have been putting plans in place for him to visit in February,” a Naval Group Australia spokesman said.

The spokesman said the Future Submarines project had “already forged a strong bond between Australia and France” and would deliver 50 years of benefits to both countries.

“It will create thousands of Australian jobs,” he said.

“We have already released our almost-$900m local manufacturing package and plan to double Naval Group Australia’s SA-based workforce this year to more than 500.”

Mr Pommellet will meet defence industry leaders and shipyard workers on his visit.

Naval Group and Defence are currently in negotiations for the next phase of the lucrative contract, which involves detailed design work and upgrades to the shipyard.

Naval Group is designing the Future Submarines to replace Australia’s ageing Collins Class fleet.

The company’s estimated costs for the next phase were reportedly up to 50 per cent higher than Defence and the government were expecting.

It was reported on Monday senior Defence officials were examining the possibility of building an updated version of the Collins Class subs with Swedish firm Saab, instead of continuing the contract with Naval Group over concerns about cost and time frame blowouts for the Attack Class.

But industry and political sources told The Advertiser it was unlikely the Federal Government would scrap its contract with the company.

Originally published as Naval Group global boss to visit SA, Canberra on Australia trip