Industry minister Christopher Pyne has indicated that the next fleet of submarines would be built using Australian steel, when discussing the future of Arrium in an interview this morning.
Pyne told the Nine Network that there was a “whole body of work coming through the pipeline” via submarine in the form of 12 submarines, nine frigates and 12 patrol boats.
“I’m optimistic and the people of Whyalla should not be panicking,” said Pyne.
Iron ore and steel business Arrium enteredvoluntary administration yesterday. ItsWhyalla steelworks lost $33 million last year, despite producing 2 million tonnes of steel, and the company is considering putting the plant in care and maintenance.
Pyne said earlier this week that the results of the “Competitive Evaluation Process” – deciding the winning bidder of contract to build Australia’s new submarine fleet – would “very likely” be known before this year’s federal election.