In November 2017 the Turnbull Government selected Luerssen as the prime contractor to supply 12 new Offshore Patrol Vessels for the Navy.
At the time, the Turnbull Government also asked Luerssen to explore options to leverage the wider shipbuilding experience base at Henderson in Western Australia, potentially opening an option for Austal to participate in the WA build program, subject to commercial negotiations.
Luerssen today announced negotiations between Austal, which have been underway since December 2017, have not been able to reach a viable commercial agreement.
Minister for Defence Industry, the Hon Christopher Pyne MP, said Luerssen will build the 10 WA OPVs at Henderson in partnership with Forgacs, a wholly owned subsidiary of CIVMEC.
CIVMEC will soon list on the Australian stock market and will have a key role as a shipbuilder in WA.
“The Turnbull Government’s commitment to construct 10 OPVs at Henderson, as part of the continuous shipbuilding program for minor war vessels in WA, remains unwavering,” said Minister Pyne.
It’s estimated the project will directly employ up to 1000 Australian workers - 400 direct and a further 600 in the supply chain.
“Construction of the first OPV will commence this year at Osborne in South Australia using ASC.”
“We will have Australian workers, in Australian shipyards, using Australian steel providing the capability Navy needs.”