Australian Steel Supply to Protect Sovereignty of Hunter Class Frigate Program

Australia’s biggest steelworks will produce and deliver thousands of tonnes of steel plate into each Hunter class anti-submarine warfare frigate under a new Framework Agreement that locks in local steel supply over the next five years and underscores the decades-long sovereignty of the nation’s naval shipbuilding and steel industries.

Steel produced at BlueScope Group’s Port Kembla Steelworks in New South Wales is a critical part of the construction of the first of three Hunter class frigates at the Osborne Naval Shipyard in South Australia.

The Framework Agreement provides long term stability and continuity for Australian steel plate to be supplied into the ship build, which now has more than 41 of the 78 units for Ship 01 currently in production at Osborne.

Seventy-seven per cent of the total amount of steel required to manufacture the first Hunter class frigate will be procured from BlueScope Distribution. Approximately 5,000 tonnes of high-quality Australian made steel will be secured and delivered for each ship—vital to the construction of the world’s most capable anti-submarine warfare frigates.

Specialised steel has been engineered to meet the specific requirements for the Hunter class frigates, and this custom material delivers high strength and exceptional toughness, ensuring outstanding performance in the most demanding marine environments.

This agreement with BlueScope Distribution marks a significant milestone for both organisations and reflects a mutual focus on building sovereign capability and delivering high-quality outcomes for defence projects.

The Framework Agreement is underpinned by the critical importance of a domestically integrated supply chain that is resilient to external influence or disruption.

This will help protect the sovereignty of a world-class, continuous naval shipbuilding capability at Osborne.

BlueScope Distribution will be able to provide warehousing and logistics services that meet the ‘steel in, ships out’ delivery that facilitates the optimal build sequencing for the Hunter class frigates.

BlueScope Distribution’s integrated service offering extends well beyond steel supply. The Framework Agreement will also enable BAE Systems to secure single source supply across its Australian business, as part of a package that includes technical product support, certification, material traceability and project management services.

These capabilities enable delivery solutions that are critical to the successful execution of complex defence projects.

Andy Coxall, Delivery Director – Acquisition, BAE Systems Maritime Australia, said:
“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."

“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.”

Mark Smith, General Manager, BlueScope Distribution, said:
“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.”

“We have a shared vision and our partnership with BAE Systems Australia enables us to demonstrate the support offered to Australian manufactures.

"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.”