NUSHIP Hobart, the first of three DDGs, commences its first series of sea trials. (Defence)

BAE Systems Australia has been awarded a five-year contract valued at $70 million to maintain the Hobart class Air Warfare Destroyers, the first of which is due to be delivered to the Royal Australian Navy next year.

This contract is creating about 50 jobs in Adelaide and Sydney to manage the delivery of support as the warships transition out of the build phase and into service.

“The appointment of BAE Systems Australia as the managing contractor for the initial sustainment of the Air Warfare Destroyers is great news for Australian industry,” said Minister for Defence Industry Christopher Pyne.

“It shows that not only can hardworking Australians build these complex warships but we can maintain them in house as well. This also represents yet another milestone for the Air Warfare Destroyer program as it simultaneously commences its transition from acquisition to sustainment while continuing to consolidate, fit-out and test the destroyers in Adelaide.”

As the managing contractor, BAE Systems will develop and manage the supporting industry supply chain to deliver the full range of sustainment services required. The company will also provide asset management and other services to ensure the DDGs are both mission capable and available.

“This is a new opportunity that allows us to develop from the ground up a leading-edge sustainment model for the entire service life of these new ships,” said BAE Systems Australia chief executive Glynn Phillips.

“This will add significant depth to our national maritime sustainment business, and it also helps contribute to a stronger and more sustainable Australian-based defence capability.”