BAE Systems is collaborating with ASC to deliver Australia’s sovereign nuclear-powered submarines.
The Australian government selected the two companies to build a fleet of advanced attack submarines under its AUKUS security pact with the United States and the United Kingdom.
Under the agreement, BAE and ASC will combine their skills, expertise and capabilities to produce SSN-AUKUS submarines for the Australian Royal Navy.
BAE said the collaborative arrangement in Australia will lead to the establishment of an incorporated joint venture to support the project.
Canberra expects to operate the first SSN-AUKUS submarine in the early 2040s. The boat is touted to be the most powerful submarine that the Royal Navy will operate.
According to BAE CEO Charles Woodburn, work is now underway on the project, noting that design and development efforts for the next-generation submarine are gaining traction.
“We look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine-building capability for Australia,” the CEO said.
ASC’s role in the contract includes handling the vessels’ maintenance and logistics requirements once they become operational. Reuters reported that the Australian company will tap U.S. and British companies for the undertaking.
Australia’s selection of partner companies for the SSN-AUKUS submarine program coincided with its announcement to invest billions in facilities supporting the vessel.
Canberra said it will spend $993 million to set up a naval base in Western Australia for nuclear submarines and U.S. and British forces that would operate in the area, work it estimated would require around $5.2 billion.