Up to 300 jobs at BAE Systems Australia could be at risk after the former Tenix yard, located in Williamstown, Victoria, failed to win contracts for the Royal Australian Navy's (RAN) new Air Warfare Destroyers.
According to a report by The Australian, BAE Systems' global chief Ian King will meet with Defence Minister Joel Fitzgibbon this week in Australia to discuss the future of shipyard. Without major contracts, BAE may have to axe a further 300 staff. Some 75 workers were laid off in 2008.
The Air Warfare Destroyer contracts were given to smaller shipyards in a move that surprised both BAE Systems and defence industry leaders. The paper said that FORGACS in Newcastle and NQEA in Cairns won the contracts based on better prices among other criteria.
Construction of the first vessel is scheduled to start late this year and the first ship is scheduled for delivery in 2014.
