PriceSensitive

Austal wins A$126M contract to export two Cape Class Patrol Boats

ASX 200
ASX:ASB      MCAP $840.8M
15 August 2019 23:50 (AEST)

Austal has signed a contract with the Government of the Republic of Trinidad and Tobago for the construction of two Cape Class Patrol Boats (CCPBs).

This new nine-figure contract follows yesterday’s announcement of a multi-million dollar contract landed with the U.S. navy.

Austal’s CEO David Singleton said the new A$126 million contract confirms a significant defence export opportunity for the company and workflow for its operations at its Henderson headquarters.

“It is important to acknowledge that the Royal Australian Navy (RAN) and the Australian Government were instrumental in the success of this defence export program,” David said.

The Government of the Republic of Trinidad and Tobago (GORTT) announced its intention to purchase two Austal CCPBs in July 2018. The vessels are expected to tighten border protection capabilities of the country and will join six Austal Fast Patrol Crafts acquired in 2009.

David stated the capabilities of the CCPBs received immense support from the RAN, the GORTT’s Minister for Trade, Minister for Foreign Affairs, and Minister for Defence.

“Austal’s Cape Class Patrol Boats have been deployed in difficult maritime situations, intercepting irregular arrivals and preventing illegal smuggling. This proven capability has attracted attention from a number of export markets, including Trinidad & Tobago,” he said.

The company originally designed and built ten CCPBs used by the RAN and Australian Border Force. The vessels span 58 metres and are made to combat maritime security threats.

Austal began construction with a metal cutting ceremony at its Henderson shipyard on April 8 2019. The GORTT Defence Force Officer, Captain Douglas Archer, and the Australian Defence Export Advocate, the Hon. David Johnston, were both in attendance.

“The increasing demand in the international market for our unique vessel designs and maritime technology is a real credit to our highly skilled workforce across our operations,” David concluded.

The GORTT requested the purchase of these vessels be financed through Export Finance Australia (EFA). The Commonwealth announced in December 2018 the Defence Export Facility would be able to support this program.

The CCPB vessels will be delivered in the second half of 2020.

Related News