Minister for Defence Materiel Jason Clare and Member for Port Adelaide Mark Butler today announced the award of a $3.25 million contract to construct the three masts for the Air Warfare Destroyers (AWDs) to Adelaide based company, MG Engineering.

"MG Engineering has already started the construction of the mast for the HMAS Hobart," said Mr Clare.

"They will hire an additional 10 staff to do this work over the next two years - taking their total staff to 40 people."

"This is a great example of a local Adelaide manufacturer winning work on the biggest Australian Defence project currently underway," said Mr Butler.

Each mast is 22 metres long and weighs 25 tonnes. The masts will be constructed in six sections and then joined together on a jig. They will then be transported by barge down Port River to the Techport site where the AWDs are being assembled.

"This is an important part of the AWD Project, involving the construction of three new warships," Mr Clare said.

"The new ships are based on a proven design from the Spanish Navy and when complete will be one of the most capable warships of its size in the world.

"Each AWD will have anti-air, anti-submarine and anti-surface warfare capability as well as the ability to embark a helicopter at sea."

Construction of the AWDs involves the fabrication of 90 separate steel blocks, 30 for each ship, as well as three additional sonar blocks at a number of shipyards in Australia and overseas.

Media contact:  Tim Quadrio (02) 6277 7290