Industry News


Posted on Jun 21, 2017

The first cut of the steel being used to build the Royal Australian Navy’s auxiliary oiler and replenishment ships (AORs) began on 19 June 2017, following the successful completion of the critical design review.

Navantia was awarded the contract to construct the ships, which will replace the Australian Navy’s current supply ships HMAS Success and Sirius. The new AORs are scheduled to be delivered by 2019 and 2020.

Managing Director of Navantia Australia, Francisco Baron, noted this important milestone in the SEA1654 project. “Navantia understands the importance of meeting targets at the initial design and build stages to deliver a capability on time and on budget and that’s why the importance of cutting steel today, on schedule, is so important.”

Australian industry will play a key role in the build of the AORs with a minimum $120 million of investment into Australian products, skills and expertise.

Navantia Australia Board Member Warren King says Navantia’s engagement with Australian Industry to build the AORs highlights the capability and capacity of local businesses which has been further demonstrated in the build of the Navantia designed Hobart Class destroyers. “We have a world class supply chain right here in Australia – it’s a combination of the right skills, right people and right attitude – that’s something Navantia Australia has come to know over the years engaged with the Australian supply chain.”

Mr King says Navantia’s understanding of the Australian supply chain makes Navantia confident that their bid for the SEA5000 Future Frigates project will provide the best opportunities for Australian industry.

“Navantia sees our local industry as critical to the build of the Future Frigates and critical to the future success of a sovereign shipbuilding industry. It’s a relationship we at Navantia have invested in and will continue to develop to grow Navantia in Australia and to grow Australian industry.”

For example, the 4500 tonnes of steel for the project has been sourced from BlueScope. The AOR's Integrated Platform Management System (the system that controls and monitors all the platform systems) will be built in Australia by NSAG. Navantia’s joint venture with Adelaide based SAGE Automation’s Hobart’s Taylor Bros will supply a range of services including hospital, laundry and galley fitouts while SAAB Australia will supply the combat management systems, and Raytheon Australia will supply the communications systems.

Navantia is responsible for the sustainment of both ships during their first five years of operation, and the shipbuilder is already working on sustainment arrangements for the future ships. The support and maintenance piece requires a bigger presence in Sydney and the company will open an office in Western Australia.