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Naval Group and CoA agree on submarine project costs and industry content

23 Mar 2021 (Last Updated March 23rd, 2021 17:26)

The Commonwealth of Australia (CoA) and Naval Group have reached an agreement over the country’s Future Submarine Program costs and local industry content.

Naval Group and CoA agree on submarine project costs and industry content
The Attack-class fleet will replace Collin class submarines (pictured). Credit: US Navy / Mass Communication Specialist Seaman James R Evans.

The Commonwealth of Australia (CoA) and Naval Group have reached an agreement over the country’s Future Submarine Program costs and local industry content.

The milestone concludes the talks between the two parties for the ‘amendments to the Strategic Partnering Agreement’.

Naval Group has committed to spending at least 60% of the contract value in Australia over the life of the programme, which will support local jobs in the defence industry.

The amendments include ‘establishing procurement organisations’ in Australia, and the ‘need to approach the Australian market in the first instance’ for majority of the equipment.

During the period of the Future Submarine Program, Naval Group will continue to report the level of contract expenditure in Australia.

Naval Group was selected as the preferred international partner for the design of 12 Future submarines, also known as Attack-class vessels, for the Royal Australian Navy.

Australia Acting Defence Minister Marise Payne said: “Beyond maximising opportunities for engagement with Australian industry, this will also ensure that the Morrison Government’s requirement for a sovereign Future Submarine capability is met.

“Importantly, the amendments have been incorporated to uphold the current structure of the Strategic Partnering Agreement, which the Auditor General concluded had established a fit-for-purpose strategic partnering framework that addresses this Government’s objectives for the Program.

“These include maximising Australian industry involvement in all phases of the programme.

“Today’s announcement builds on the opportunity for industry to participate in the manufacture of equipment designed by Naval Group worth hundreds of millions of dollars across the 12-boat fleet.”

The Future Submarine fleet will replace the fleet of six Collins-class submarines that are currently operational.