• Naval Group
    Naval Group

Naval Group has committed to 60 per cent Australian Industry Capability (AIC) for the Future Submarines.

The company appeared before the Senate Economics References Committee looking into Australia's sovereign naval shipbuilding capability last night.

Naval Group recently faced criticism from Defence Minister Linda Reynolds after local CEO John Davis was quoted in The Australian as saying the company faced 'challenges' in Australia's industry profile.

"I am disappointed by comments attributed to Naval Group Australia as they do not reflect the strong collaboration between Naval Group and Australian industry on this program of national significance," Minister Reynolds said. "Our government will hold Naval Group to account for the commitments they signed on for.

"The government remains focused on the thorough execution of the design phase of the program and the preparation for construction."

In an opening statement to the Senate yesterday, Naval Group's Executive Vice President for Future Submarines Jean-Michel Billig said the company was 'disappointed' by the reporting and aimed to get Australian industry on-board.

"There has been recent commentary questioning Naval Group’s commitment to industry which has been both disappointing and inaccurate," Billig said. "In the programs we have been associated with in Brazil and India, we exceeded our ambitions for local content and capability and we are extremely confident we will do the same in Australia even though Australia is a much more demanding customer.

"Therefore herewith we commit to a level of Australian industry capability that will have the effect of at least 60 per cent of the Naval Group contract value spent in Australia."

The company says it is confident this will be achieved, as all 12 submarines will be built in Australia.

"We will meet Australia’s requirements on time, on budget and through maximizing Australian industry involvement."

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