Civmec Limited (“Civmec” or the “Group”) through its wholly owned subsidiary Forgacs Marine and Defence Pty Ltd will today unveil plans for its new state-of-the-art shipbuilding facility primarily targeted at Naval Defence projects, at a ground-breaking ceremony today officiated by, the Honourable Colin Barnett, the Premier of Western Australia (“WA”).
The heavy engineering specialist is positioning itself for participation in Australia’s A$89 billion (S$94 billion) naval ship and submarine upgrading program, which forms part of the Australian government’s projected A$195 billion (S$207 billion) overall defence investment over the decade from now until 2025-26*. The new facility in Henderson will rival the best shipyards in the world and is part of Forgacs goal to enhance Australia’s profile as a globally efficient naval ship builder.
The facility will be able to house ship construction and on-going maintenance under cover in a conducive and efficient environment close to Fleet Base West – the home of Australia’s submarine force and half of its naval surface fleet. It will be the only facility with this capacity in Australia.
The Group, which has developed a suite of core competencies in heavy engineering, believes that these in-house capabilities, its dedicated shipbuilding facility and its securing of the strong Forgacs credibility will position the company as a force to be reckoned with for the Commonwealth Governments upgrade and expansion programs.
At this point, the Group anticipates an overall investment in the region of A$80 million to develop the entire facility over the coming years. Based on this timing of construction it is intended that the proposed new facility be funded using internal cash resources and borrowings. Design and planning have already commenced with a further more detailed focus on engineering and geotechnical analysis occurring immediately in the New Year.
The new facility will be situated on approximately seven-hectare (70,000 square metres) of land adjoining the south side of the group’s existing facility at the Australian Marine Complex in Henderson, and when operating at capacity is expected to provide additional jobs for up to 1,000 workers, as well as up to 100 additional apprenticeships and graduates.
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