Australian Steel Agreement Protects Sovereignty of Hunter Class Frigate Program
- MM24 News Desk
- 2 hours ago
- 3 min read
Australia's largest steelworks at Port Kembla will supply approximately 5,000 tonnes of specialized steel plate for each Hunter class frigate under a new five-year Framework Agreement that ensures domestic steel supply for the nation's most advanced anti-submarine warfare vessels. The agreement between BAE Systems Maritime Australia and BlueScope Distribution secures a sovereign supply chain for constructing the first three frigates at theC, with 77% of Ship 01's steel already sourced domestically.
In a major boost for Australia's naval sovereignty, BlueScope Group's Port Kembla Steelworks in New South Wales will become the primary steel supplier for the Hunter Class Frigate Program, ensuring that thousands of tonnes of specialized Australian-made steel plate flow into the construction of the nation's most advanced anti-submarine warfare frigates. The new Framework Agreement locks in domestic steel supply for the next five years, providing long-term stability for both Australia's naval shipbuilding and steel industries.
The agreement means that approximately 5,000 tonnes of high-quality Australian steel will be secured and delivered for each of the Hunter class frigates currently under construction at the Osborne Naval Shipyard in South Australia. This domestic sourcing is particularly crucial given that 77% of the total steel required for the first frigate is already being procured from BlueScope Distribution, with more than 41 of the 78 units for Ship 01 currently in production.
Andy Coxall, Delivery Director – Acquisition at BAE Systems Maritime Australia, emphasized the strategic importance of this arrangement. "This agreement secures the future for Australian made steel plate for the Hunter Class Frigate Program, providing the safety and sovereignty to ensure that the most advanced anti-submarine warfare frigates are constructed to the highest quality standard," he stated.
The specialized steel has been engineered specifically to meet the demanding requirements of the Hunter class frigates, which are considered among the world's most capable anti-submarine warfare vessels. This custom material delivers both high strength and exceptional toughness, ensuring outstanding performance in the most challenging marine environments where these ships will operate.
What makes this partnership particularly significant is its focus on building a resilient, domestically integrated supply chain that remains immune to external influences or disruptions. As Coxall explained, "The Hunter Class Frigate Program is a national endeavour and Australian companies like BlueScope understand the need to provide a resilient sovereign supply chain that will build the naval capability to protect our undersea lines of communication and maritime trade routes."
The agreement extends well beyond simple steel supply. BlueScope Distribution will provide comprehensive warehousing and logistics services designed to support the 'steel in, ships out' delivery model that facilitates optimal build sequencing for the complex frigate construction program. This integrated service package includes technical product support, certification, material traceability, and project management services—all critical components for successfully executing sophisticated defense projects.
Mark Smith, General Manager of BlueScope Distribution, expressed enthusiasm about the strengthened partnership. "We're delighted to have been invited by BAE Systems Australia to enter into this Framework Agreement which acknowledges our longstanding partnership and commitment to supporting a domestic, fully integrated steel supply chain to support the defence industry," he said.
Smith highlighted the comprehensive nature of their offering: "We offer customers quality BlueScope manufactured products, various steel processing capability through our own facilities and those of our carefully selected partners as well as robust project management delivery solutions. It's this level of project management support which enables us to support our customers like BAE Systems Australia to deliver projects to specification."
The Framework Agreement represents a significant milestone in Australia's journey toward greater defense sovereignty. By ensuring that the majority of steel for these advanced warships comes from domestic sources, the program reduces dependence on international supply chains that could be vulnerable to geopolitical tensions or global disruptions.
This approach aligns with broader national security objectives while simultaneously supporting Australian manufacturing and employment. The partnership between BAE Systems Maritime Australia and BlueScope Distribution demonstrates how defense procurement can serve dual purposes—delivering cutting-edge military capability while strengthening domestic industrial capacity for decades to come.
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