Australia Signs A$2.2 Billion Contract to Upgrade Collins Class Submarines

Australia has signed an A$2.2 billion ($1.4 billion) four-year contract with state-owned submarine builder ASC to upgrade its Collins class submarines.

This “sustainment contract” is a key part of the government’s pledge to maintain the diesel-electric powered Collins-class fleet as a “potent strike and deterrence capability,” according to Defence Industry Minister Pat Conroy.

Job Security and Economic Impact:

The contract will directly ensure job security for over 1,100 highly skilled workers. The upgrade work will be carried out in Henderson, Western Australia, and Osborne, South Australia.

This initiative underscores the government’s commitment to bolstering local industry and employment in these regions.

Future Plans and AUKUS Pact:

Osborne, one of the primary sites for the submarine upgrades, is also set to be a key location for future projects.

ASC and Britain’s BAE Systems will jointly build Australia’s fleet of nuclear-powered submarines, a core component of the AUKUS pact between Britain, the U.S., and Australia.

Until the nuclear submarine construction begins later this decade, Osborne will handle much of the maintenance for the existing Collins-class fleet.

Long-Term Investment:

This contract is part of the center-left government’s broader commitment of A$4 to A$5 billion to the Collins class submarines, ensuring their operational capability into the 2040s. This investment reflects Australia’s strategic emphasis on enhancing its maritime defense capabilities.