Australia Invests $2.2 Billion to Upgrade Collins-Class Submarines

Australia has signed a four-year, A$2.2 billion contract with state-owned ASC to upgrade its Collins-class submarines. This deal aims to maintain the fleet's deterrence capability and secure jobs for over 1,100 skilled workers. The upgrade is part of a broader A$4-5 billion commitment by the government.

Australia announced on Saturday that it has entered into a A$2.2 billion ($1.4 billion) four-year agreement with state-owned submarine builder ASC to upgrade its Collins-class submarines. The 'sustainment contract' aims to ensure the diesel-electric powered fleet remains 'a potent strike and deterrence capability,' according to Defence Industry Minister Pat Conroy.

The contract is expected to provide job security for more than 1,100 highly skilled workers in Henderson, Western Australia, and Osborne, South Australia. Osborne is also slated to be the site where Britain's BAE Systems and ASC will jointly construct Australia's nuclear-powered submarines, a key element of the 2021 AUKUS pact involving Britain, the U.S., and Australia.

Until the new submarines roll off the line, the Collins-class fleet will continue to receive maintenance at the Osborne shipyard. Conroy emphasized that this agreement is part of the center-left government's broader A$4-5 billion commitment to submarine capabilities, with plans for the fleet to be operational into the 2040s.