Announcement of Air Warfare Destroyer Full Block Production

15 April 2010

BAE Systems Shipyard, Williamstown, Victoria

I would like to acknowledge:

• The Honourable Jacinta Allan MP, Victorian Minister for Regional and Rural Development, Industry and Trade, State Member for Bendigo East;
• The Hon Wade Noonan MP, State Member for Williamstown (TBC);
• Mr Steve Ludlam, Managing Director ASC;
• Mr Michael Ward, Managing Director Raytheon Australia;
• Mr John Gallacher, AWD Alliance CEO;
• Mr Jim McDowell, Managing Director, BAE;
• Mr Merv Davis, Director Maritime, BAE; And
• Most importantly the workers who will actually be building these three massive warships.

Introduction

We are here to celebrate the fact that full production of the hull modules or blocks for the Air Warfare Destroyers have well and truly begun.

Building the Air Warfare Destroyers will involve more than three thousand people across Australia.

At this point in our Nation's history, the Air Warfare Destroyers are the single biggest defence procurement ever attempted.

When they are built and delivered, this new Hobart Class of Air Warfare Destroyers will provide the Royal Australian Navy with one of the world's most capable multi-mission warships. These ships will provide air defence for accompanying ships in addition to land forces and infrastructure in coastal areas, and for self-protection against missiles and aircraft. The Aegis Combat System, in combination with the SM-2 missile, will provide an advanced air defence system capable of engaging enemy aircraft and missiles at ranges in excess of one hundred and fifty kilometres.

The Government's 2009 White Paper outlines the coming challenges in the next decades and emphasises the importance of a strong maritime force to Australia. The AWDs will be an important part of Force 2030.

In terms of the complexity of the task only the construction of the Collins class submarines rivals the AWD project.

What it takes to build a warship

To give this event some context, what does it actually take to build an Air Warfare Destroyer?

The block you can see behind me reveals the challenge of constructing these machines. The material that goes into each ship is impressive and includes:

• Four thousand, seven hundred and seventy tonnes of steel;
• One hundred and thirty seven thousand, eight hundred and thirty litres of paint;
• Over fifty kilometres of steel piping;
• Almost five hundred kilometres of electrical cable;
• Nearly five thousand mechanical valves;
• About six kilometres of rope; And
• Over one and a half million nuts, bolts and other fasteners.

The work involved in block production includes plate cutting, shaping, welding, grinding, blasting and painting, and lagging and insulation. This is supported by the engineering, data production, planning, quality assurance and safety management processes.

The AWD Workforce

The people involved in the AWD project-you-are engineers, boilermakers, electricians, pipe fitters, welders, storemen, project managers, safety officers; to name just a few. More than three thousand people in total across Australia. Each of you has an important part to play in the success of the project.

Not only has the AWD project attracted skilled workers, it is attracting many young people. Young people who will begin their working careers as apprentices in shipyards building the AWDs, some of whom will go on to long careers in shipyards or in manufacturing, mining and other industries.

BAE Systems currently employs seventeen apprentices, with another twenty three planned to be recruited over the next two years. ASC currently employs nine apprentices with another six joining in 2010 and more beyond that. Forgacs currently employs twenty three apprentices, with another seventeen to be recruited over the life of the project

All up, the AWD project will engage more than two hundred apprentices, which is an important foundation for the Defence industry of the future. These really are exciting opportunities for young Australians.

Block Construction

Today, there are three shipyards engaged in building hull blocks for the AWDs-BAE Systems here in Williamstown, ASC in Adelaide and Forgacs in Newcastle.

Each AWD has thirty one hull blocks, ninety three blocks overall for the project. For each ship, BAE Systems will fabricate twelve blocks, ASC will fabricate nine blocks, and Forgacs will fabricate ten blocks.

In this shipyard four hundred production workers are involved in AWD block production; about five hundred production workers will be involved at ASC in Adelaide and around one hundred and forty at Forgacs in Newcastle.

These contracts are worth about $300 million to BAE Systems and $150 million for Forgacs. This is a considerable boost to the economies of Melbourne and Newcastle.

BAE Systems are currently fabricating four keel blocks. When assembled, these blocks will form the foundation for the ship's gas turbine and diesel engine propulsion system, and will measure sixty nine metres long and weigh over four hundred and fifty tonnes.

At ASC, work is underway on two superstructure blocks, with a total length of thirty five metres and weighing more than two hundred tonnes. Forgacs is now working on three other superstructure blocks, with a total length of thirty six metres and weighing more than two hundred tonnes.

In twelve months time completed blocks will start to arrive in Adelaide for consolidation into the complete warship at the Government of South Australia's Common User Facility. The first block will come from this shipyard.

Forgacs will deliver their first block in August 2011 and ASC will complete their first block in September 2011.

Broader aspects of the AWD Project

The AWD project is currently on budget and schedule, and I thank everyone involved with the AWD Alliance for their commitment and hard work.

AWD construction work is also happening outside the three main shipyards. In Hobart, Taylor Brothers are manufacturing the accommodation modules for the ships. In Port Kembla, BlueScope Steel is producing steel for the ships. These contracts are each worth about $20 million to the economies of Tasmania and the Illawarra.

In Adelaide, a range of companies including Ferrocut and United Fasteners have won contracts.

I won't go into the details of all the activity surrounding the combat system, but organisation like Raytheon Australia, the US Navy, Lockheed Martin, Babcock Australia, Ultra Electronics, and many others are producing what will be a very sophisticated and powerful combat system for these warships.

I also announced yesterday that the AWD Alliance had completed its Electronic Warfare source selection and had chosen ITT-EDO Reconnaissance and Surveillance Systems as the preferred supplier.

ITT will team with two Australian based companies, Avalon Systems and Jenkins Engineering Defence Systems to deliver this important capability for the AWD.

This contract is worth around $30 million and over a third of the work will be done locally. Importantly this will help support the Priority Industry Capability that resides within certain parts of Electronic Warfare, specifically: EW counter-measures development and validation; EW re-programming, system integration and 'tuning' of overseas developed EW systems; The management of threat libraries; and, Selective strategic product development to maintain high-end EW knowledge and capability.

This project is not just about building ships. The civil infrastructure development at BAE Systems, ASC and Forgacs, and the Common User Facility in Adelaide, represents an investment of $500 million. All those facilities will of course be used for other work, but this work is a major national project in itself.

Conclusion

I would like to take this opportunity to thank John Gallacher for all his work in leading the AWD Alliance team over the past three years. Thank you John! We wish you well in your return to your family and new home in Perth. In closing I would also like to commend Merv Davis and his shipbuilding team here in Melbourne, Steve Ludlam and his shipbuilding team in Adelaide and Stephen Forgacs and his shipbuilding team in Newcastle on the commencement of full block production of the AWDs.

The Air Warfare Destroyer project is an exciting endeavour for Australia. It brings together many thousands of skilled and talented people, committed to working together to make this project a success.

There are sure to be challenges ahead.

I know you have that skill and talent to bring the project to a successful conclusion.

The ships that you will produce, the Air Warfare Destroyers, will strengthen the defence of Australia for the next generation and I thank you for your efforts.

THE HON. GREG COMBET MP
Minister for Defence Materiel and Science