The project will support Australia's sovereign capability to build and sustain its naval vessels and implement a continuous build of naval surface ships in Australia, and is anticipated to generate over 6,300 full-time jobs across Australia at its peak in 2028.
The Hunter class frigates will be built by ASC Shipbuilding at the Osborne Naval Shipyard in Adelaide. ASC Shipbuilding has become a subsidiary of BAE SYSTEMS Australia as part of the transaction, with the Commonwealth retaining a "sovereign share" in ASC Shipbuilding.
The Government has approved the initial project budget of over A$6 billion for design activities, including to incorporate the Australian requirements, prototyping and ordering long-lead items.
The Ashurst team was led by projects partner Steve McKinney, assisted by a Canberra team consisting of counsel Hyans Mach, senior associate Tess Hemming, and lawyers Jordan Tsirimokos, Cale Woods and Katherine Roderick. Employment advice was provided by partners Paul Vane-Tempest and Jon Lovell, supported by senior associate Elissa Speight. Partner Rehana Box advised on the insurance aspects, and partner Sanjay Wavde provided tax advice. Corporate partner Nick Terry also advised, along with teams in London, Madrid and Milan.
Commenting Steve McKinney said:
"This is a very significant transaction for the Commonwealth – it will re-shape the naval shipbuilding industry in Australia over the next 30 years. It is one of the most complex Defence projects undertaken, involving complex IP arrangements, a privatisation of a Government Business Enterprise, infrastructure development, workforce restructuring and IT system development."
