South Australia secures major defence contract

A South Australian shipyard was the centrepiece of a global defence announcement this morning.

Eight nuclear-powered submarines will be built at Australian Submarine Corporation Osborne on the LeFevre Peninsula, while other new defence contracts are expected in the future.

“South Australia and particularly Osborne will be a hub for Australia’s naval shipbuilding ambitions and programs,” Prime Minister Scott Morrison said this morning.

READ MORE: Australia to acquire nuclear-powered submarines in historic security pact with US and UK

© 9News A South Australian shipyard was the centrepiece of a global defence announcement this morning.

Premier Steven Marshall dubbed South Australia “the defence state” amid the news.

“Today we just cement in those jobs for today, those jobs for tomorrow, in fact those jobs for decades to come for South Australians,” Mr Marshall said.

However, it comes at the expense of the $90 billion dollar contract with Naval Group to build 12 Attack Class submarines in the state.

It is a change that has potentially put up to 750 jobs in limbo.

READ MORE: China says AUKUS submarine deal ‘gravely undermines regional peace and stability’

© 9News A fleet of nuclear-powered submarines will be built in Osborne, west of Adelaide, while other new defence contracts are expected in the future.

“These are 750 South Australian families who are now left with a grave degree of uncertainty,” opposition leader Peter Malinauskas said.

The government is committing to transitioning the entire skilled shipbuilding workforce to other projects, confirming a pipeline of works for the state.

These include upgrades to the Hobart-class destroyers and continuing the full-cycle docking of the Collins-class that switches to life-of-type extensions on the six subs from 2026 through to 2038.

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