The Australian Government has awarded a $400 million contract to Navantia Australia to maintain and sustain Navy vessels, securing around 200 local jobs across Sydney, Melbourne, and Perth.
In a news release, the Government stated that the seven-year contract reflects its commitment to bolstering the domestic defence industry while supporting small and medium enterprises (SMEs) critical to national security.
Navantia Australia has been appointed as the first multi-class Design Support Contractor, responsible for providing through-life engineering and design expertise for the Navy’s Canberra-class helicopter landing docks, landing craft, Supply-class replenishment ships, and Hobart-class guided missile destroyers.
The contract also mandates engagement with Australian SMEs to carry out critical engineering work, ensuring a broader distribution of work across the domestic supply chain.
“This contract is yet another example of our commitment to supporting [the Australian defence industry] and the businesses that employ them,” said Minister for Defence Industry and Capability Delivery Pat Conroy.
“Through this contract, we have secured 200 jobs and are supporting our sovereign defence industry which is delivering critical engineering work for our Navy and helping to keep Australia safe.”
The agreement is the first in a series of Design Support Contracts that the Department of Defence plans to establish for various naval capabilities, aiming to enhance efficiency and effectiveness in the engineering and design support provided to Australia’s maritime fleet.
“The Albanese Government is committed to ensuring more work on our naval vessels is done locally, supporting more work for Australian small and medium businesses and jobs for Australians,” Conroy added.
This initiative forms part of the Government’s broader investment in maritime capabilities, which includes up to $159 billion over the next decade for continuous naval shipbuilding and sustainment efforts in Australia.
The investment is expected to drive long-term growth in the defence industry, which currently employs more than 100,000 people nationwide.
