Austal Welcomes Shipbuilding Announcement by the Australian Government

Austal welcomes today’s announcement by the Australian Government and the commitment it demonstrates to the Australian shipbuilding industry.

Austal Chief Executive Officer Andrew Bellamy said the large Government investment in naval shipbuilding and a shift to a continuous build model from the previous project-based model was a truly transformative change.

“A continuous build program will preserve important skills and capability in the Australian workforce and drive productivity improvements which are essential to maximise taxpayer value, ensure Australia’s shipbuilding industry is internationally competitive, and lay the pathway to expanding naval exports from Australia,” Mr Bellamy said.

Austal also welcomes the announcement of a competitive evaluation process for the future surface combatant programs. A competitive process will drive the right balance between economics and Australia’s defence force capability, and Austal looks forward to participating in that process for both Frigates and Offshore Patrol Vessels. While Adelaide, given its existing infrastructure, is the logical choice for assembly of the Future Frigate, the facilities and workforce in Western Australia are similarly well positioned to deliver Offshore Patrol Vessels.

“There are great opportunities in both the Future Frigate and the Offshore Patrol Vessel programs for Australian shipbuilders, including here in Western Australia where the local industry has built all of the Commonwealth’s Patrol Boats for the past 17 years as well as supporting major upgrades to the Anzac Frigates and sustainment of the Collins Submarines,” Mr Bellamy said.

“Austal’s Henderson yard has already proven that Australian shipbuilding can be internationally competitive as we continue to export Naval ships, and that is why we welcome this vote of confidence in the domestic industry that the Government has made today.”

Austal also welcomes further reform of ASC. ASC has some of the world’s best infrastructure which is matched by the skills and capabilities of its workforce.

However, it has long been Austal’s position that Governments should not operate shipyards and this development removes the unnecessary complication of being both customer and shipbuilder. Austal will consider any future opportunities today’s announcement of further reform of ASC may provide to the Company into the future.

“Austal is the only Australian-owned, ASX-listed, international defence prime contractor and we remain committed to playing a leading role in the future of Australian shipbuilding,” Mr Bellamy said.

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About Austal

Austal is a global defence prime contractor and a designer and manufacturer of defence and commercial ships. For more than 25 years Austal has been a leader in the design, construction and maintenance of revolutionary ships for Governments, Navies and Ferry operators around the world. More than 250 vessels have been delivered in that time.

Ships

Defence vessels designed and built by Austal include multi-mission combatants, such as the Littoral Combat Ship (LCS) for the United States Navy and military high speed vessels for transport and humanitarian relief, such as the Joint High Speed Vessel (JHSV) for the United States Navy and High Speed Support Vessel (HSSV) for the Royal Navy of Oman. Austal also designs, constructs, integrates and maintains an extensive range of patrol and auxiliary vessels for government agencies globally, including the Cape Class Patrol Boat Program for Australian Customs and Border Protection. Defence vessels are designed and constructed in Mobile, Alabama and in Henderson, Western Australia.

Austal has been at the forefront of the high speed ferry market since the early days of the industry. Our market leading designs of high performance aluminium vessels have long been at the heart of Austal’s research and development. Today, commercial ship construction is centred on our shipyard in Balamban, Philippines.

Systems

Austal has expertise in integrating complex systems into its ships, including ride control, ship management, and communication, sensors and weapon systems.

Support

Austal provides a wide range of support services, including through life support, integrated logistics support, vessel sustainment and systems support. These services are delivered through our global support network in the USA, Australia, Asia, and the Middle East together with partner shipyards worldwide.

For further information contact:

Cameron Morse, FTI Consulting
Tel:           +61 8 9485 8888
Email:      cameron.morse@fticonsulting.com