(Sharecast News) - BAE Systems said on Thursday that it and ASC Pty Ltd have been selected by the Australian government to build the country's new fleet of nuclear powered submarines.
The contract is part of the AUKUS trilateral security pact between the United States, the United Kingdom and Australia.
BAE said the SSN-AUKUS will be the largest, most powerful and advanced attack submarines the Royal Navy has ever operated and will start to replace the Astute class - which it is building at its site in Barrow-in-Furness in the North West of England - from the late 2030s.
Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s.
BAE chief executive Charles Woodburn said: "We're extremely proud of our role in the delivery of this vitally important, tri-nation submarine programme. Our selection as a partner in Australia, alongside ASC, recognises our role as the UK's long-term submarine design and build partner and as a key player in Australia's maritime enterprise and wider defence landscape.
"Drawing on decades of experience in the UK and Australia, we look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine building capability for Australia. We're already making good progress on the design and development of the next generation submarine in the UK where we have more than 1,000 people working on the SSN-AUKUS programme and major infrastructure investment underway.
"This latest step will ensure an integral connection between the UK design and the build strategy development in Australia as we work together to deliver next generation military capability as well as considerable social and economic value to all three nations."
BAE Systems (BA.)