Thales Australia wins $1.3 billion navy maintenance contract

The Australian government has awarded a A$2 billion (US$1.3 billion) seven-year contract to maintain and sustain the country’s naval fleet in Sydney to Thales Australia.

Thales Australia was appointed Regional Maintenance Provider for the new Regional Maintenance Centre East at Australian Department of Defence’s (DoD’s) Garden Island Precinct.

A new maintenance centre will be constructed which will support the maintenance of the Royal Australian Navy’s (RAN’s) HMAS Choules landing ship dock, Hobart-class guided missile destroyers and Canberra-class landing helicopter docks.

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‘It will ensure Australia has the sovereign industrial base to maintain and sustain Australia’s naval fleet into the future,’ a government statement noted.

The government has claimed the deal would support more than 900 jobs, of which 120 would be direct defence industry roles, with 800 more jobs within the broader industrial ship repair workforce.

Pat Conroy MP, minister for defence industry for Australia, remarked: ‘Growing our sovereign naval shipbuilding industrial capability is not just good for jobs, it’s imperative for our national security.’

The deal has also included incentives for local and regional businesses to compete for work.

‘I’m focused on making it easier for local industry to partner with the DoD and this partnership with Thales Australia will help to do that,’ Conroy added.