Concern over the capacity of the local industry will see two 20,000 tonne Australian Navy vessels constructed in either Spain or Korea.
Australian Defence Minister David Johnston made the announcement this morning, according to the AFR, explaining the decision was made after continuing issues with the Adelaide-based air warfare destroyer project.
“We assess that currently, Australia is not in a position to manufacture those vessels,’’ Senator Johnston said.
“We will have a restricted competition between Navantia of Spain and Daewoo Shipbuilding [of Korea]… for the replacement of those two replenishment ships.”
There is now concern that thousands of jobs could be lost between the BAE Williamstown and the Forgacs shipyard in Newcastle.
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