Nine Hunter class frigates to be built in Adelaide in $35bn deal hailed by both countries

This article is more than 2 years old

This article is more than 2 years old

The British defence company BAE Systems has won the $35bn (£20bn) contract to build Australia’s fleet of new navy frigates.

The Australian government has announced that the company’s Type 26 Global Combat ship will be the design for the naval program. The nine new ships will be built in Adelaide and will be known as the Hunter class.

Malcolm Turnbull’s government said the program would create 4,000 jobs across the country and create unprecedented local and global opportunities for businesses large and small.



The British prime minister, Theresa May, said the export of a British design for the frigates would be an “enormous boost” for the UK economy and touted the deal as an example of opportunities that would open up for Britain after Brexit.

“The sheer scale and nature of this contract puts the UK at the very forefront of maritime design and engineering, and demonstrates what can be achieved by UK industry and government working hand-in-hand,” May said.

“We have always been clear that as we leave the EU we have an opportunity to build on our close relationships with allies like Australia. This deal is a perfect illustration that the government is doing exactly that.”

But British union leaders were unimpressed with the deal, arguing that the government’s failure to invest in factories meant that shipbuilding communities in the UK would not benefit.

May and her ministers have pressed the Australian government repeatedly on the benefits of the UK’s design and engineering. BAE saw off competition from Spain’s Navantia and Italy’s Fincantieri to win the deal.

The Hunter class “will be one of the most capable warships in the world”, the Australian government said.

“The Hunter class will have the capability to conduct a variety of missions independently, or as part of a task group, with sufficient range and endurance to operate effectively throughout the region.”

The finance minister, Mathias Cormann, said the contract would deliver “one of the world’s most advanced anti-submarine frigates”. “It will create about 4,000 jobs, and it will secure a sovereign naval shipbuilding industry here in Australia for decades to come,” he told Sky News.

The federal government-owned ASC Shipbuilding will become a subsidiary of the UK defence giant during the build. The advanced guided missile frigates will begin entering service in the late 2020s.

Britain’s foreign minister, Boris Johnson, said on Twitter the project was “fantastic news” and a sign of a strong UK-Australia relationship.

Boris Johnson (@BorisJohnson) Fantastic news that #Australia has chosen @BAESystemsplc Type 26 frigate for its new warship contract, worth up to £20bn. Even further proof the UK-Australia relationship is stronger than ever! https://t.co/GVRkdJqpnm

The chief executive of BAE Systems, Charles Woodburn, said the selection of the company reinforced its position as a “leading designer and builder of complex maritime platforms”.

“I am proud that our world-class anti-submarine warfare design and our approach to transferring technology and skills to the nations in which we work is expected to contribute to the development of an enduring world-class naval shipbuilding industry in Australia,” he said.

But the deal was criticised by British union leaders. Gary Cook, Scottish chairman of the Confederation of Shipbuilding and Engineering Unions, said: “The inconvenient truth is that we’re not exporting ships, only manufacturing jobs that should be going to British shipbuilding communities.

“Had the UK Government and BAE invested in the promised frigate factory at Scotstoun, those frigates could easily be built here. Instead, there is a rubble pile where that factory should be while 4,000 jobs and significant prosperity will be enjoyed in Australia and not the UK.”