Submarine maintenance recovery

Release date: 21 October 2009

Australian submarine and shipbuilding company, ASC, confirmed today that it is on track to meet the Government’s requirements for the Collins Class submarines.

Under a shake-up commenced in May with the departure of the previous CEO, ASC has responded to the need to improve submarine availability and reduce the cost of maintenance.

Acting Managing Director and Chief Executive Officer Graeme Bulmer acknowledged the Government’s concerns and said that the company was acting decisively to address the issues.

“ASC has made a number of substantial changes to the submarine business to improve the level of submarine availability and reduce the cost of maintenance,” he said.

“We are working closely with the Government to implement world’s best maintenance and efficiency practices to ensure that the warfighter’s needs are being met.

“Our expectation, and that of our customer, is that we will meet the Government’s requirements and we are certainly doing everything possible within a resource-constrained environment to achieve this.”

The unique Collins Class submarines, which were designed in the 1980s and much of the equipment purchased over 20 years ago, are Australia’s most complex weapons system with over 1.5 million parts. The submarines are now entering the second half of their service lives with the oldest submarine now more than 15 years old.

The company is negotiating a new long-term performance-based submarine maintenance contract with the Government which will focus on submarine safety, availability, reliability and reducing the cost of maintenance.

Mr Bulmer said that comments about ASC’s performance did not reflect the current situation as 2009 has been a year of significant change and refocus for the company in addressing performance concerns.

“Our staff have responded to the challenge and are now making great strides to address the Government’s needs.”

ASC will complete its $120m purpose-built shipyard on schedule this year and commences construction on the three Air Warfare Destroyers as planned in 2009. The appointment of a permanent Managing Director and Chief Executive Officer is expected to be announced shortly.

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