Civmec key partner for navy work bids

Interest in Federal defence contracts has continued to intensify, with Henderson-based Civmec joining forces with Government-owned shipbuilder ASC, while German shipbuilding company Lurssen has also eyed buying an interest in Civmec.

According to the The West Australian, Civmec and ASC’s alliance will see them bid for the $3 billion offshore vessels patrol program in a joint tender which, if successful, would involve ASC building the first two patrol vessels in Adelaide, with Civmec building the remaining 10 in Henderson.

Civmec’s partnership with ASC makes it a stronger rival to fellow Henderson shipbuilder Austal, which is a frontrunner for the big contract with German designer Fassmer.

Lurssen, meanwhile, is one of the companies shortlisted to build a $1 billion fleet of corvettes for the Australian Navy and has flagged plans to set up a regional construction hub in WA.

While looking for local partners to bid for the contract, Lurssen has weighed up plans to buy into Civmec, and has said it is likely to recruit about 1000 workers if it wins the contract.

The Federal Government announced an $89 billion naval shipbuilding program last year, splitting work between SA and WA. The split of work on the projects was designed so the workforce in Adelaide would be employed until the $35 billion future frigates programs starts in 2020.

New WA Premier Mark McGowan has made a vow to secure more defence contracts for the State as WA looks to diversify its economy in the wake of the mining downturn.