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Key milestone for South Australia’s naval shipbuilding industry

In a major boost to South Australia’s defence industry capability, BAE Systems Australia, Lockheed Martin Australia and Saab Australia, have officially launched a landmark program to upgrade the Royal Australian Navy’s (RAN) Hobart class guided missile destroyers.

The initiative marks a significant milestone and follows the signing of the first Delivery Tasking Statement by a powerful alliance known as the Combat Systems Integration – Integrated Project Team (CSI-IPT), established under a collaboration agreement with the Commonwealth of Australia.

The three Hobart-class destroyers; HMAS Hobart, HMAS Brisbane, and HMAS Sydney, represent the most advanced surface warships in the RAN fleet. Their initial construction at Osborne Naval Shipyard in Adelaide from 2007-2020, marked a defining chapter in South Australia’s naval shipbuilding history. Now, with this next-generation combat system upgrade, the state reaffirms its critical role in the future of Australian maritime defence.

This new phase will see the integration of enhanced Aegis Combat System technology, Saab’s new Australian Interface, and the Tomahawk Weapon System, enabling greater combat readiness and interoperability across the Indo-Pacific. The upgrades represent a leap in capability and are also a strategic move to support Australia’s sovereignty in defence technology.

Paul Berryman, BAE Systems Australia – Maritime, Acting Managing Director, said the partnership ensures three of Australia’s largest defence industry primes are united in a shared goal to equip the RAN with advanced capability.

“This marks a key milestone in the delivery of capability by the CSI-IPT, with much more to come on the horizon across the Hobart Class and Hunter Class – the core of Australia’s current and future surface fleet,” Mr Berryman said.

More than 130 Defence and industry personnel, predominantly based in Adelaide, are leading the activity involving systems integration, testing, and certification. Their work will also establish a sovereign Combat Systems Integration capability, a cornerstone for the country’s future naval self-reliance.

Lockheed Martin Australia and New Zealand chief executive, Warren McDonald, reinforced the strategic importance of the work, describing the upgrade as a “force multiplier across the Indo-Pacific.”

“We are leveraging more than 50 years of experience in delivering air and missile defence to navies globally with Aegis and integrating with Australian Industry Capability to ensure the Royal Australian Navy’s Hobart Class surface fleet possess the capability edge to fight and win at sea,” he said.

Saab Australia Managing Director, Andy Keough CSC, echoed the sentiment, also noting the benefits it will bring to the broader RAN fleet.

“The Hobart Class combat system upgrade also increases commonality across the RAN surface fleet to deliver operating, training and sustainment efficiencies,” said Mr Keogh.

The Hobart class upgrade comes at a crucial time, with prototyping for the Hunter class frigates, also to be built at Osborne already underway. These projects are laying the groundwork for a continuous naval shipbuilding enterprise in South Australia, ensuring long-term jobs, skills development, and sovereign capability.

Photo: BAE Systems Australia, Lockheed Martin Australia and Saab Australia

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