Australian Naval Support Contract

RNS Number : 5722Y

Babcock International Group PLC

02 March 2012

 



2 March 2012

Babcock International Group PLC

Naval Support Contract for Australian Anzac Class Frigates

Babcock International Group PLC (Babcock), in partnership with UGL Infrastructure Pty Ltd (UGL), has been announced as the preferred tenderer for the Anzac Ship Group Maintenance Contract (GMC) in Australia.  The GMC will provide support to the Royal Australian Navy's eight Anzac class frigates.

The contract is expected to be valued at A$300 million (c £200 million) over an initial five year period, with an option to extend for a further five years.  The final contract is expected to be signed by the end of June 2012 and become operational, after a transitional phase, on 1 January 2013. 

This contract marks Babcock's entry into the surface ship support market in Australia at a time when the Australian Department of Defence is seeking to reform its naval ship repair market to ensure optimum value for money while setting high standards of performance.  Both Babcock and UGL have proven track records and considerable experience in managing long-term, performance-based maintenance contracts as well as delivering efficient and cost-effective support for major warships. 

Babcock and UGL have also been down selected to tender for the Amphibious and Afloat Support Ships' GMC when it is released.  This is expected to be by mid 2013.

Commenting on the award Peter Rogers, Chief Executive of Babcock said:

"We are delighted to have won this contract with our partners UGL.  We look forward to working with the Australian Government and developing a long-term relationship as we support its plans to deliver a new, cost-efficient, integrated naval support solution.

This success reinforces our confidence in the growth prospects for Babcock in the Australian naval support market."

Enquiries

Babcock International Group PLC                                        020 7355 5300

Peter Rogers

Bill Tame

Terri Wright

FTI Consulting                                                                      020 7269 7291

Andrew Lorenz                                                                       07775 641 807

Nick Hasell   

 

END

 

 

MSCBKBDPCBKKBNK