Yesterday's release from Defence Industry Minister Christopher Pyne gave some hint of the how the chips will fall on the $3 billion build of the 12 Offshore Patrol Vessels (OPVs) designed by Sea 1180 winner Luerssen.
The German shipbuilder is still engaged in contract negotiations with Civmec subsidiary Forgacs Marine and Defence and Austal regarding the build of 10 of the OPVs in WA from 2020. ASC will build the first two vessels at the Osborne Naval Shipyard in SA. The release, however, stated that “Civmec will provide the steel from Australian suppliers for all 12 OPVs”, confirming responses to Senate Estimates last year by CASG Deputy Secretary Kim Gillis that Luerssen's established supply chain via Civmec would be maintained.
Forgacs Marine and Defence MD Mike Deeks could only confirm to ADM that negotiations were still underway with Luerssen, and the company was unable to provide further comment. He did expect that given the timeline under which the OPVs were to be built, more detail surrounding the nature of the WA build would be forthcoming in the very near future.
Regarding the steel: "If the Minister has deemed it should be included in the release you can take it as read.”
ADM Comment: While the release confirming contract signature between Luerssen and the Commonwealth is welcome news, many keen program watchers are more interested to know the nature of the workshare between Forgacs Marine and Defence and Austal for the remainder the of the build. Who's doing what? ADM will keep a keen eye on the program and let you know more as we do.