Western Australian company Civmec has been awarded to work with Lürssen Australia, through its subsidiary company Forgacs, on the 12 Offshore Patrol Vessels (OPV) project for the Australian navy.
In addition to supplying steel for all 12 vessels in the program, the company will participate in the assembly of ten of these vessels at its shipbuilding facility in Henderson, which is currently under construction.
Minister for Defence Industry, Christopher Pyne, made the announcement on Friday, after Lürssen announced that its negotiations with Austal had failed to reach a viable agreement.
Late last year the government selected Lürssen as the prime contractor to supply 12 new Offshore Patrol Vessels for the navy.
The first two OPVs will be built in collaboration between with Lürssen and ASC at the Osborne Naval Shipyard in South Australia, starting this year.
Negotiations were ongoing between Lürssen with both Austal and Civmec for the remaining 10 OPVs, which will be constructed at the Henderson Maritime Precinct in Western Australia, from 2020.
“The Turnbull Government’s commitment to construct 10 OPVs at Henderson, as part of the continuous shipbuilding program for minor war vessels in WA, remains unwavering,” said Minister Pyne.
Civmic’s CEO, Pat Tallon said the company has begun mobilising personnel and equipment to ensure steel for the project is cut in time to meet the Q4 requirements of the construction of the first vessel in South Australia.
“Securing such long-term work is great news for the company, our employees and our current and future apprentices and trainees,” Tallon said.
Civmec, which is set to list on the on the Australian stock market, said this contract award takes the company’s order book to more than A$800 million.