BAE and ASC Pty Ltd selected to build SSN-AUKUS submarines

Image: BAE Systems

In what is scarcely a surprising move, the Australian Government has selected BAE Systems and ASC Pty Ltd to build Australia’s new fleet of SSN-AUKUS nuclear powered attack submarines. In the latest significant development in the AUKUS trilateral security pact between the United States, the United Kingdom and Australia, the news was announced yesterday by Australian Deputy Prime Minister, Richard Marles, and U.K. Defence Secretary, Grant Shapps,

Under the AUKUS agreement with the U.S., Australia and the U.K. will operate a common submarine of the future, the SSN-AUKUS, incorporating technology from all three nations, based on the U.K.’s next generation design which BAE Systems is leading.

BAE Systems and ASC Pty Ltd are to form a long-term, incorporated joint venture company that will construct the submarines at the Osborne Naval Shipyard in South Australia. Once in place, the joint venture will be accountable for the delivery of the SSN-AUKUS submarines, and the associated safety, security and regulatory compliance.

ASC says that in the near term it will provide sustainment for visiting US Virginia Class and UK submarines at Garden Island, Western Australia. This work will commence with a rotational presence of U.S. and U.K. nuclear-powered submarines. In the interim, ASC personnel will undergo Virginia Class sustainment training, including on-the-job training deployments to the Pearl Harbor shipyard in Hawaii from late 2024.

As Australia acquires its sovereign Virginia Class submarines, ASC will integrate Virginia Class sustainment with its existing Collins Class submarine sustainment program to deliver consistent submarine availability to the Royal Australian Navy.ASC will also be responsible for sustaining the SSN AUKUS submarines, including their short-term, medium-term and deep-cycle maintenance.

BAE Systems chief executive, Charles Woodburn, said: “We’re extremely proud of our role in the delivery of this vitally important, tri-nation submarine program. Our selection as a partner in Australia, alongside ASC, recognizes our role as the U.K.’s long-term submarine design and build partner and as a key player in Australia’s maritime enterprise and wider defence landscape. Drawing on decades of experience in the U.K. and Australia, we look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine building capability for Australia.

“We’re already making good progress on the design and development of the next generation submarine in the U.K. where we have more than 1,000 people working on the SSN-AUKUS program and major infrastructure investment underway.

“This latest step will ensure an integral connection between the U.K. design and the build strategy development in Australia as we work together to deliver next generation military capability as well as considerable social and economic value to all three nations.”

SSN-AUKUS will be the largest, most powerful and advanced attack submarines the Royal Navy has ever operated and, from the late 2030s, will start to replace the Astute class, which BAE Systems is building at its site in Barrow-in-Furness in the North West of England. Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s.

The U.K. Ministry of Defence awarded BAE Systems almost GBP 4 billion (about US$505 billion) for the next phase of the SSN-AUKUS program in October. The funding covers development work through to 2028, enabling BAE Systems to progress the detailed design phase of the program and procure long-lead items. The award is also funding significant infrastructure investment in Barrow, which will see the site’s facilities double in size from 80,000 to 160,000 square meters by the late 2030s.

BAE Systems has already increased its U.K. submarines workforce to 13,500 with plans to grow to around 17,000 at its peak to support SSN-AUKUS in the U.K., as well as the Astute and next-generation Dreadnought SSBN programs.

BAE Systems has already delivered five of seven Astute class submarines to the Royal Navy in the U.K., with the remaining two boats at advanced stages of construction.

In Australia, BAE Systems has a 70 year history of providing advanced defense technology from air and maritime sustainment to shipbuilding.