Australia Signs $1.4 Bln Contract to Upgrade Navy Submarines

Australia announced on Saturday that it has signed a AUD 2.2 billion (USD 1.4 billion) contract over four years with the state-owned submarine manufacturer ASC to upgrade its Collins-class navy submarines.

Defense Industry Minister Pat Conroy stated that the "support contract" is part of the government’s commitment to maintaining the diesel-electric Collins fleet as a "formidable strike and deterrent force."

Conroy emphasized that the contract will directly secure the jobs of over 1,100 highly skilled workers, with the work being carried out in the towns of Henderson in Western Australia and Osborne in South Australia.

ASC, in collaboration with British firm BAE Systems, will also be responsible for building Australia’s fleet of nuclear-powered submarines in Osborne.

This project falls under the AUKUS security alliance, established in 2021 between the United Kingdom, the United States, and Australia to counter China's growing influence in the South Pacific.

Until the commencement of the nuclear submarine construction later this decade, the shipyard will handle significant maintenance work on the current Collins-class fleet.

Conroy highlighted that this initiative is part of the center-left government's pledge to allocate between $4 and AUD 5 billion to submarines.