BAE Systems has awarded an $83m (£64m) contract to an Australian company to support the construction of three new warships.
Hobart-based CBG Systems has secured the deal with BAE Systems Maritime Australia to supply and install fire, thermal and acoustic insulation on the first three Hunter Class frigates being built for the Royal Australian Navy.
The contract is the latest to be announced as part of the Hunter Class program, which is expected to involve more than 80 Australian suppliers.
The deal will also see CBG Systems establish operations at the Osborne Naval Shipyard in South Australia, with its own personnel, workshop and office space supporting the construction program.
The company, which employs more than 45 people and has more than four decades of experience in the maritime industry, has already supplied insulation for prototype sections of the Hunter frigates.
BAE Systems said the insulation will play an important role in the vessels, which are being designed for anti-submarine warfare and rely on stealth and sound reduction.
David Shepherd, managing director of BAE Systems Australia – Surface Ships, said the work delivered by CBG Systems during the early stages of the program had been "world-class".
He said the Hunter program was helping to establish an enduring industrial base capable of supporting Australia's complex defence programs.
Javier Herbon, managing director of CBG Systems, described the deal as a "landmark contract" for the company and Tasmania's defence industry.
He said the company's work on the Hunter program began in 2023 and that the new contract represented a significant expansion, including the creation of a permanent presence at Osborne.
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The Hunter Class program is being delivered by BAE Systems Maritime Australia, part of the wider BAE Systems group, which has a major presence in Lancashire.
BAE Systems employs thousands of people across the county, including at its sites in Warton and Samlesbury, where it has a long-standing role in the UK's defence and aerospace industries.
The Hunter Class frigates are being developed for the Royal Australian Navy as part of Australia's long-term naval shipbuilding program.
The latest contract takes the number of contracts awarded for work on the first three Hunter Class frigates to more than 140.
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