Naval Group to Invest, in Australia, 60% of Contract Value for 12 Submarines

30.03.2021 Europe
Naval Group to Invest, in Australia, 60% of Contract Value for 12 Submarines

Naval Group to Invest, in Australia, 60% of Contract Value for 12 Submarines

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Naval Group and the Australian government confirmed that they have reached an agreement that at least 60% of the contract value for the twelve future Attack-class submarines be spent in Australia. This commitment is now integrated into the program’s Strategic Partnership Agreement (SPA) signed in 2019.

The inclusion in the Strategic Partnership Agreement of this additional commitment, proposed by Naval Group in 2020, is a continuation of its initial commitment to maximize Australian content in the design and construction of Australian submarines.

Pierre-Eric Pommellet, Chairman and CEO of Naval Group, declared on this occasion: “Naval Group is fully committed to supporting the development of a sovereign submarine capability in Australia.”

Pierre-Eric Pommellet, who traveled to Australia last February to meet with local partners and Australian government representatives, recalled: “I was very impressed by the strong capacity of Australia’s industrial fabric and its enthusiasm for the Attack-class submarine project.”

“This program will enable the delivery of regional superiority submarines to the Australian Navy. They will be the most advanced conventional submarines in the world, designed specifically for Australia’s needs.”

“The program will also create a new sovereign industry dedicated to building submarines in Australia. The local industrial base thus strengthened will enable Australia to guarantee its autonomy for this critical defense capability.”

Chief Executive Officer of Naval Group Australia - a wholly owned subsidiary of Naval Group dedicated to running the program in Australia - John Davis, said his teams are already working with hundreds of local businesses to build self-reliance and sovereignty defense industry in Australia, and that he was proud of their commitment to the development of jobs and industry in Australia.

“The share of local content will increase as the twelve Attack Class submarines are completed as we continue to work with local businesses to boost Australia's sovereign capability,” said John Davis.

“By ensuring that at least 60% of the contract value is spent locally, we will create hundreds of sustainable Australian jobs across the country,” he added.

Naval Group has more than a century of experience in the realization and construction of submarines, in France and around the world. Naval Group was selected in 2016 by Australia as a benchmark international partner to build the new fleet of submarines that will defend Australia's borders for decades to come.

Pierre-Eric Pommellet declared: “Sovereignty is a value common to France and Australia. This program and this partnership between the two countries is unique. Naval Group will live up to its commitments for Australia.”

Naval Group has already created nearly 300 direct jobs in Australia. Naval Group Australia plans to double its workforce with the objectives of building the hull qualification section in 2023 and cutting the first thick hull in 2024 at the Osborne shipyard.

More than 120 Australian companies have already expressed their interest in becoming Tier 1 partners in the program to Naval Group, in response to the publication of the first round of industry tenders worth nearly AUD 900 million.

John Davis said: “We were impressed with the quality of the responses to our RFP. The program has already made good progress. We are still in the early stages but are already creating jobs and designing the most advanced conventionally powered submarines in the world.”

Naval Group is the European leader in naval defence. Naval Group uses its extraordinary know-how, unique industrial resources and capacity to arrange innovative strategic partnerships to meet its customers’ requirements. As a system-integrator and prime contractor, the group designs, produces and supports submarines and surface ships. It also supplies services to shipyards and naval bases. Attentive to corporate social responsibility, Naval Group adheres to the United Nations Global Compact. The group reports revenues of 3.3 billion euros and has a workforce of 15,798 (data for 2020).



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