On June 26 2009, Mr Greg Combet, Minister for Defence Personnel, Materiel and Science, announced that ASC, on behalf of the AWD Alliance, had signed a contract with BAE Systems Australia Defence for the construction of Hull Blocks for the Hobart class Air Warfare Destroyer.

BAE systems have joined Newcastle NSW based FORGACS Group in winning hull block construction work, worth a total of approximately $450 million. This will create about 450 direct jobs, as well as many more through sub-contractors and suppliers.

Over the period of the contract, BAE Systems will build a total of 36 blocks for all three destroyers. These blocks comprise the hull machinery compartments and bow and stern sections of the ships, representing the most complex parts of the hull.

In addition to the hull blocks contract, BAE Systems also supply the maritime satellite communication terminals and Mark 45 deck guns for the warships.

The Victorian Government have contributed toward the infrastructure upgrade cost for BAE Systems’s Williamstown shipyard, where major components of the work will be undertaken.

Work is scheduled to commence on the first of the blocks towards the end of 2009.