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In a significant move for Australia’s defense capabilities, Prime Minister Anthony Albanese has unveiled a substantial investment aimed at bolstering the nation’s naval infrastructure. The federal government is committing $3.9 billion to the Osborne shipyard in Adelaide, setting the stage for a workforce skilled in constructing AUKUS nuclear-powered submarines.
During his announcement, Albanese described this financial commitment as a crucial “downpayment” towards the shipyard’s enhancement, aligning with the ambitious target of building eight advanced submarines. This facility will pave the way for the employment of 10,000 skilled workers, a vital component in realizing this maritime project.
The total expenditure for this initiative is projected to reach $30 billion, as estimated by Australian Naval Infrastructure, marking a monumental investment into the nation’s naval future. This endeavor is part of the AUKUS agreement, an international defense partnership with the United States and Britain, focusing on the acquisition of nuclear-powered (but not nuclear-armed) submarines over the next decade.
The economic impact of this development extends beyond direct employment at the shipyard. The federal government anticipates the creation of 5,500 jobs within the shipyard itself, with a ripple effect generating thousands of additional roles in related industries, spurred by the shipyard’s extensive construction activities.
The federal government says 5500 jobs will be created at the shipyard, with thousands more indirect roles stemming from the shipyard’s construction programs.
“This is a driver of not just of national security and how were going to defend our nation into the future,” Albanese said.
“It’s also a driver of our economic prosperity, as well as making such an enormous difference to some of the apprentices that we’ve met here today.”
Speaking alongside the prime minister, Defence Industry Minister Pat Conroy said the Adelaide shipyard would be the only in the southern hemisphere capable of constructing nuclear-powered submarines.
“Importantly, this will modernise Aussie manufacturing as we go through it because it’s not just the 10,000 jobs here,” he said.
“We’ve got 70 companies already going through the qualification process to win work supplying not just Australian submarines but UK and US submarines.”
AUKUS was signed five years ago by the leaders of Australia, the US and UK in a move aimed at deterring China’s assertiveness in the Pacific.
Doubt over the future of AUKUS emerged last January when US President Donald Trump was sworn in.
He ordered a review of the defence pact by the Pentagon, concerned it did not meet his “America first” agenda.
The agreement hung in the balance for months until the US Defence Department gave the green light in September. 
Later, Trump warmly endorsed AUKUS when he hosted Albanese at the White House, saying it was “full steam ahead”.
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