Australia announced on Saturday that it has signed a four-year, AU$2.2 billion (US$1.4 billion) contract with the state-owned submarine builder ASC to upgrade the Collins-class submarines of the Australian Navy, while awaiting the delivery of nuclear-powered vessels under the AUKUS agreement.
Defense Industry Minister Pat Conroy stated in a press release that this “sustainment contract” is part of the government’s commitment to maintain the Collins-class fleet of diesel-electric submarines at a “significant level of strike and deterrence capability”.
Conroy mentioned that this contract will “directly provide job security for over 1,100 highly skilled workers,” with the related work to be carried out in Henderson, Western Australia, and Osborne, South Australia.
The government statement highlighted that this initiative aims to develop local professional skills in preparation for Australia’s upcoming nuclear-powered submarine fleet.
Osborne is where ASC and British company BAE Systems collaborate to build Australia’s nuclear-powered submarine fleet. The submarine fleet is a vital security treaty signed by the UK, US, and Australia in 2021 – a core component of the AUKUS agreement.
This work is set to commence later in the decade. In the interim, while awaiting the delivery of nuclear-powered vessels under the AUKUS agreement, shipyards will undergo extensive maintenance work on the existing Collins-class fleet.
Conroy stated that these submarines are planned to operate through the 2040s.
Australia is set to receive its first Virginia-class nuclear-powered submarine from the US after 2032.
Prior to signing the four-year agreement with the state-owned defense contractor ASC, the government announced a submarine life extension program. The program, set to commence in 2026, will first upgrade the HMAS Farncomb submarine.
In June, the government pledged AU$4 to 5 billion to upgrade the six Collins-class submarines that served between 1996 and 2003.
In March this year, Australia also put forth a plan to build SSN-AUKUS class nuclear-powered submarines by ASC and British defense contractor BAE Systems. Conroy mentioned at the time that constructing these submarines is “the largest industrial challenge in Australia’s history, both in scale and technical complexity”.