Australia agrees to refurbish its military submarines for $1.4 billion

Australia announced on Saturday that it had entered into a four-year contract worth A$2.2 billion ($1.4 billion) with ASC, a state-owned submarine constructor, to enhance the navy’s Collins class submarines.

The “sustainment contract” is a component of the government’s commitment to maintain the diesel-electric powered Collins-class fleet as a formidable offensive and defensive capability, as stated by Defense Industry Minister Pat Conroy.

The deal will directly provide job stability for around 1,100 workers who possess advanced skills. The work will be conducted in the towns of Henderson in Western Australia and Osborne in South Australia, as stated by Conroy.

Osborne is the location where ASC and Britain’s BAE Systems will collaborate to construct Australia’s fleet of nuclear-powered submarines, which is the central element of the 2021 AUKUS agreement between Britain, the U.S., and Australia.

Prior to the commencement of the next project in the later part of this decade, the shipyard serves as the primary location for conducting maintenance activities on the current Collins-class fleet.

Conroy stated that the allocation of funds for the submarines is a component of the centre-left government’s financial pledge of A$4 to A$5 billion. These submarines are intended to remain in operation until the 2040s.

The exchange rate is 1 US dollar to 1.5272 Australian dollars.