LATEST: Workers at Williamstown’s shipyard have been granted a reprieve after being contracted to produce an additional three blocks under the $8.5 billion Air Warfare Destroyer (AWD) program.
As reported by Star Weekly in August, the federal government was understood to be in negotiations for BAE Systems to take over the country’s largest defence project.
BAE replaces the government-owned ASC in Adelaide as prime shipbuilder on three AWDs.
The Williamstown shipyard, which employs more than 1000, had been in danger of closing next year when current work ran out.
State Manufacturing Minister David Hodgett said the contract meant BAE could retain its AWD workforce once current work was completed, while awaiting further decisions from the federal government about future naval shipbuilding work.
“The Victorian Coalition government will continue to work co-operatively with the federal government to secure the future of the Williamstown shipyard, which is not just of great value for Victoria, but is in the best interest of Australia’s national security,” he said.
“Today is a first step towards long-term securement of these skilled jobs at Williamstown.”
BAE maritime director Bill Saltzer said the additional blocks for the third AWD would bring the total number constructed in Williamstown to 21.
“BAE Systems has secured the additional blocks because of the shipyard’s high quality and productivity and proven capability to deliver the blocks on schedule,” he said.
Eleven blocks have already been delivered under the original contract.
Warships are created by assembling pre-built blocks.
Mr Saltzer said BAE had invested in more advanced manufacturing capabilities to improve production processes.
