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BAE Systems Australia and BlueScope Steel have signed a landmark agreement to supply thousands of tonnes of Australian-made steel for each of the Royal Australian Navy’s Hunter Class frigate fleet.
This landmark, five-year framework agreement will see Australia’s largest steel manufacturer supply thousands of tonnes of Australian-made steel plate – a move that reinforces the sovereign strength of the nation’s naval shipbuilding and steel industries.
Under the agreement, BlueScope’s Port Kembla Steelworks in NSW will produce high-grade steel for the construction of the first of three Hunter Class frigates at Osborne Naval Shipyard in South Australia, underlying the long-term stability and resilience of the nation’s domestic industrial base.
More than 41 of the 78 major ship units for the first Hunter Class frigate are already in production, with 77 per cent of the steel required for the vessel to be sourced from BlueScope Distribution.
Each ship will incorporate roughly 5,000 tonnes of locally produced, high-performance steel, purpose-engineered to meet the demanding standards of modern naval operations.
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.”
This specialised steel delivers exceptional strength and toughness to ensure optimal performance in harsh maritime environments. The agreement represents a major milestone for both BlueScope and BAE Systems Australia, reflecting their shared commitment to building sovereign capability and supporting the Defence sector with world-class materials and technical expertise.
Mark Smith, general manager, BlueScope Distribution, celebrated this contract, saying, “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.”
Critically, the deal underpins Australia’s integrated and resilient supply chain, a safeguard against external disruption and a cornerstone of the nation’s continuous naval shipbuilding program. BlueScope Distribution will provide end-to-end warehousing, logistics and delivery services to support the “steel in, ships out” production rhythm at Osborne.
Beyond raw materials, BlueScope’s integrated offering includes technical product support, certification, full material traceability and project management, enabling BAE Systems to streamline procurement across its Australian operations.
“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,” Coxall added.
Together, the two companies are helping to ensure that Australia’s next generation of warships is built from the ground up with sovereign steel, sovereign skills and sovereign industry strength.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
