A memorandum of understanding between the governments of Western Australia and South Australia will keep a "significant" amount of the construction of air warfare destroyers in WA, Industry and Enterprise Minister Francis Logan has said.
A memorandum of understanding between the governments of Western Australia and South Australia will keep a "significant" amount of the construction of air warfare destroyers in WA, Industry and Enterprise Minister Francis Logan has said.
The Federal Government yesterday committed to spend up to $11 billion on Spanish-designed air warfare destroyers and large landing ships.
The three new destroyers, based on the Navantia F100 now in service with the Spanish navy, and two new landing ships - versions of Navantia's 27,000 tonne strategic projection ship will cost up to $8 billion and $3 billion respectively.
The state government had been very keen to attract a piece of the action to the Henderson-based Australian Marine Complex, with Industry and Enterprise Minister Francis Logan meeting with Navantia representatives and visiting Spanish ship-building precincts last year.
"The AMC is the logical choice for ship module fabrication and it is worth noting that approximately 70 percent of the air warfare destroyer modules will be built outside of South Australia," Mr Logan said.
The year before, then-Premier Geoff Gallop predicted that up to 35 per cent of the module fabrication work could take place at the facility.
The Commonwealth's decision is a win for Spain's shipbuilding industry, which will construct the hulls of the two landing ships and parts of the air warfare destroyers.
Most of the destroyers will be constructed in module form at shipyards around Australia, then assembled at the ASC (formerly the Australian Submarine Corporation) plant at Osborne in South Australia.
The landing ships - termed LHDs (landing, helicopter, dock ships) - will be fitted out with superstructure and other systems in Australia, with most of the work to be performed at the Melbourne shipyard of defence company Tenix.
A Tenix spokesman said it was likely that 25 per cent of the work would be undertaken in Australia, with the single biggest location for the work would be Melbourne - though all states would have an opportunity to bid for contracts.
In a statement, the company said: "As contract negotiations get under way, we look forward to working with industry throughout Australia to maximise Australian involvement in this project. Through the ANZAC Ship Project, Tenix has developed a deep understanding of the capabilities and skills of Australian industry, which it will put to work in this project."
The project web site states that WA industry potentially could be awarded contracts for block fabrication and fit-out, communications and combat system support, pumps, mechanical handling systems, hull doors, structural doors and hatches.
The text of an edited Ministerial announcement is pasted below
Industry and Enterprise Minister Francis Logan has welcomed the announcement by the Federal Government that Spanish shipbuilder Navantia has won the contract to build the Royal Australian Navy's new air warfare destroyers and amphibious ships.
Mr Logan said the Navantia partnership with Australian defence companies Tenix and ASC would prove to be a winner for Western Australia.
"WA has been actively building a strong relationship with Navantia over the past 18 months," he said.
"I have been on two missions to Spain to meet with senior representatives from Navantia to promote WA's exceptional module fabrication capabilities and to strengthen our links with the company.
"In addition, Navantia's representatives have also visited the Australian Marine Complex at Henderson to view WA's module fabrication capabilities. WA also hosted the first visit to Australia by the Spanish Navy's F100 multi-purpose frigate, the Alvaro de Bazan, earlier this year.
"This provided us with the opportunity to reinforce the AMC's capabilities and also enabled WA industry to view the ship and receive technical briefings to identify potential business opportunities."
Mr Logan said a significant amount of the ASC's work on the new air warfare destroyers would be done in WA, thanks to a memorandum-of-understanding that was signed by the WA and South Australian governments to capitalise on the shipbuilding capabilities of each State.
He said the ASC was also increasing their presence in WA through the construction of new $35 million facilities at the AMC.
"The AMC is the logical choice for ship module fabrication and it is worth noting that approximately 70 percent of the air warfare destroyer modules will be built outside of South Australia."
Mr Logan said this decision proves WA backed a winner in its support for Navantia.
But he said it was disappointing the Federal Government had not insisted that Navantia build the hulls for the amphibious chips in Australia.
"Navantia was prepared to do the work in Australia, rather than at their shipyards in Spain," he said.
"I am very disappointed that the Howard Government did not insist that this occur. It means that billions of dollars will be needlessly going overseas, especially when we have the capacity and infrastructure to do the work in WA.
"The State Government will continue to promote the AMC to all parties to secure more of the module components for the two contracts."
