Australia’s shipbuilder Austal has opted out of the country’s Offshore Patrol Vessel (OPV) program due to failed negotiations with the main contractor German ship designer Lürssen.
"Lürssen has worked hard to explore options to leverage the experience base at Henderson for the construction of 10 vessels in Western Australia, including conducting lengthy negotiations with Austal," Defence Connect quotes Lürssen Australia in its statement.
"Ultimately, the negotiations with Austal have not generated a proposal that represents an acceptable level of value for money and Austal will not be a participant in the OPV build team," the statement said.
In November 2017, the German shipbuilder was awarded SEA 1180 OPV project, which is worth up to AU$4 billion, to build the fleet of 12 new Royal Australian Navy offshore patrol vessels.
The builder confirmed in the statement that it has moved to conclude commercial negotiations with its build partners for the multibillion-dollar project.
Lürssen is now making subcontracting arrangements with ASC and Perth-based Civmec Construction and Engineering for steel fabrication and construction, Saab Australia for the situational awareness system and L3 for communications throughout the ships.