Babcock International Group PLC Joint venture wins new Australian defence contract (1276J)
December 03 2018 - 2:00AM
UK Regulatory
TIDMBAB
RNS Number : 1276J
Babcock International Group PLC
03 December 2018
3 December 2018
Babcock International Group PLC (Babcock or the Group)
Babcock joint venture wins new Australian defence contract
Naval Ship Management (NSM), a 50/50 joint venture between
Babcock, the engineering services business, and UGL, has been
awarded a new contract by the Australian Defence Force, worth
around AU$1.5 billion for up to 15 years. The contract is for an
initial five years (Babcock share for this initial period AU$250
million) with the expectation of two further five year
extensions.
The partnering agreement, which was won in a competitive
process, sees NSM appointed Asset Steward of the largest vessels in
the Royal Australian Navy: two flagship Canberra Class Landing
Helicopter Docks (LHD) and their 12 associated amphibious LHD
landing crafts. The joint venture will begin the work to sustain
and support these critical vessels in July 2019.
This significant award builds on Babcock's long standing
relationship with the Australian Defence Force. NSM provides
sustainment support to the Royal Australian Navy's fleet of ANZAC
class frigates through to the end of their life. Babcock also
supports the Australian Defence Force's ground support
equipment.
Australian Minister for Defence, the Hon Christopher Pyne MP
said:
"NSM has a proven track record in innovation, performance,
collaboration and building the Australian workforce capability with
similar sustainment programmes. We are looking forward to working
with them to ensure safe delivery of the LHD assets, ensuring they
are both available and performing as required."
Babcock Chief Executive Archie Bethel said:
"We are delighted to have been chosen for this strategically
important role which builds on our existing relationship with the
Australian Defence Force. Through NSM we will apply Babcock's
digitally enabled asset management capabilities to support this
strategically important capability over the next decade and
beyond."
Ends
For further information please contact:
Babcock International Group
PLC
Simon McGough Kate Hill
Director of Investor Relations Group Director of Communications
Tel: +44 (0)20 3823 5592 Tel: +44 (0)20 7355 5312
FTI Consulting
Andrew Lorenz
Nick Hasell
Tel: +44 (0)20 3727 1340
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END
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