Supporting Australia’s future shipbuilding capability

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The Hon Christopher Pyne MP

Minister for Defence Industry

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11 October 2016

ASC plays a crucial role as part of our naval shipbuilding, repair and maintenance industry.

To ensure that it is best placed to support the future needs of Australia’s future shipbuilding capability, the Government will separate ASC into three individual Government owned companies.

These three new companies will support the key capabilities of:

- Shipbuilding

- Submarine sustainment; and

- Infrastructure.

The separation of ASC will deliver a more flexible approach to managing the investment required in shipbuilding infrastructure to support the Government’s historic continuous shipbuilding program.

The new submarine sustainment and shipbuilding companies will continue ASC’s important role in the sustainment of the Collins Class submarines and finalisation of the Air Warfare Destroyers respectively.

The creation of these three new companies follows a strategic review of ASC, which was conducted in 2015. The review sought to identify the best possible corporate, capital and governance arrangements to help maximise the future success of ASC and the Australian naval shipbuilding industry.

It is important to note that the Government does not have a plan to privatise these three new companies.

These changes will have no impact on ASC employees’ current terms and conditions and will provide the right structure for the growth of the workforce as a result of major infrastructure investment and the construction of Offshore Patrol Vessels, Future Frigates and Future Submarines.

Work will begin immediately to separate ASC into the three new companies, with the full separation expected to be completed in 2017.

The Government will also enter into discussions with the South Australian Government on the future of the Common User Facility at Techport to ensure a cohesive approach in support of future naval projects.

The Government recognises the significant value to our nation of a skilled naval shipbuilding workforce. The Government is prepared to invest in the skills and knowledge base of the Australian naval ship building industry, and is prepared to commit to a long-term investment to make sure this important industry enjoys a sustainable future in Australia and that these critical skills are maintained.

Media Contacts

For Minister Pyne – Rory Grant – 0409 517 669
For Minister Payne – Henry Budd - 0429 531 143

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