The announcement from Australian deputy prime minister, Richard Marles, and UK defence secretary, Grant Shapps is the latest significant development in the AUKUS trilateral security pact between the United States, United Kingdom and Australia.
Under the AUKUS agreement, Australia and the UK will operate a common submarine, incorporating technology from all three nations and based on the UK’s next generation design that BAE Systems is leading.
BAE Systems and ASC Pty Ltd will now bring together their complementary skills, expertise and capabilities under a collaborative arrangement in Australia, ultimately leading to the establishment of a long-term, incorporated Joint Venture.
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In a statement, BAE Systems chief executive, Charles Woodburn, said: “We’re already making good progress on the design and development of the next generation submarine in the UK where we have more than 1,000 people working on the SSN-AUKUS programme and major infrastructure investment underway.
“This latest step will ensure an integral connection between the UK 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.”
According to BAE Systems, SSN-AUKUS will be the largest, most powerful and advanced attack submarines the Royal Navy has operated. It will start to replace the Astute class, which BAE Systems is building at its site in Barrow-in-Furness, from the late 2030s. Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s.
The UK Ministry of Defence awarded BAE Systems almost £4bn for the next phase of the SSN-AUKUS programme in October. The funding covers development work through to 2028, enabling BAE Systems to progress the detailed design phase of the programme and procure long-lead items.
The award is also funding infrastructure investment in Barrow, which will see the site's facilities double in size from 80,000 to 160,000 m2 by the late 2030s.
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