DEFENCE CONNECT: 16th October 2024

Civmec Limited and Naval Vessels Lürssen of Bremen, Germany, have entered into a non-binding heads of agreement, detailing the framework for the transfer of ownership of Luerssen Australia to Civmec Limited. Luerssen Australia’s sole business is the building of six Arafura Class offshore patrol vessels for the Royal Australian Navy under the existing SEA 1180 contract with the Australian Department of Defence, (the original order was for twelve but it was halved by the Defence Strategic Review).

Then RADM Peter Quinn, RAN Head Navy Capability, positions the keel laying coin at the OPV 5 keel laying ceremony in 2022

Upon completion of the potential transaction, Naval Vessels Lürssen (NVL) will transfer all of its shareholding in Luerssen Australia to Civmec Limited, including all assets, employees, and licences. This will ensure the uninterrupted design and build of the Arafura Class offshore patrol vessels at the Osborne South shipyard in South Australia and the Civmec-owned facility in Henderson, Western Australia.

The proposed change of ownership and control of Luerssen Australia is subject to Commonwealth consent. In order to obtain such consent as soon as possible, Luerssen Australia and Civmec will engage with the Commonwealth in the required administrative approval process as soon as possible, with the parties working towards a target date of 31 December 2024. “The acquisition of Luerssen Australia is a natural step for Civmec as a sovereign Australian shipbuilder with world-class shipbuilding facilities and an experienced shipbuilding workforce,” Civmec executive chairman Jim Fitzgerald said.

“Having worked on the project since 2018, we’re confident in our ability to execute the remaining work scope and ensure a smooth transition for all stakeholders.”