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Media speculation that Newcastle-based Forgacs is set to lose some of its AWD construction work is unfounded, according to Forgacs’ CEO Lindsay Stratton.

The statement came after reports in national media about a leaked review of the air warfare destroyer project which recommended 50 per cent of defence work at Forgacs be moved to Melbourne and Adelaide.

Stratton said that Forgacs’ management is not aware of any plans to change the current scope of AWD work underway at Forgacs. 

“The company is building 37 of the 93 blocks for the Air Warfare Destroyers (AWD). Over recent months we have made significant progress with our performance. We have lifted our productivity and quality performance and delivered our work on schedule and to our customer’s requirements. This has been a great achievement for our company and our people.”

Among other recommendations, the yet unpublished review by former US Navy secretary Don Winter and Australian shipbuilder John White raised questions about productivity at Forgacs.

The review proposed the government sack its own shipbuilder, ASC, and appoint British defence company BAE Industries to manage the $8.5billion air warfare destroyer project, reports said.

“Our AWD subcontract performance was formally reviewed by ASC at the recent subcontract Biannual Review held in Newcastle without identification of performance issues or any indication of a need to review the scope of work,” Stratton said. 

AWD Alliance CEO Rod Equid complemented Forgacs on the turnaround saying: “Forgacs’ performance on Ship 3 blocks has been very good.”

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