Australian Navy's newest boats made in China

Australia Broadcast Center

23-04-2025

A new fleet of tug boats ordered for the Australian Navy by the Defence Department was secretly built at a Chinese shipyard under a $28 million contract awarded last year to a Dutch company.
Certification documents uncovered by the ABC reveal the first of three "harbour tugs" was completed in late December at the Damen company's "state-of-the-art" Changde facility in Hunan province, before being delivered to Darwin earlier this year.
In a letter sent from its Netherlands headquarters last year, Damen told the Defence Department the tug boat build "will be heavily reliant upon established supply chains both in Australia and overseas" but did not specify any work would occur in China.
"Therefore, to maximise opportunities for competitive (local) industry, Damen will implement proven systems and processes established that will ensure value-for-money for the Commonwealth of Australia," the company wrote in December.
Damen Shipyards Changde says its workkers have been producing vessels built to the highest standards at competitive price levels for more than 30 years.
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According to the Damen correspondence, the second of its Azimuth Stern Drive (ASD) 2111 tug boats was due to arrive in Australia by May this year, but the ABC has confirmed a third vessel will also be delivered before the end of 2025.
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It is firmly understood that the Commonwealth of Australia needs a partner with this endeavour who has significant shipbuilding and sustainment experience and is willing to share knowledge, appropriate intellectual property and individual skills.
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"The value of the Contract is approximately $28 million with an Australian contract expenditure percentage of 47% of the procurement of the 2 x ASD 2111 for the sustainment of the tugs over the life of type (est. 25 years)," the Damen letter states.
In a statement Defence confirmed the tug boats are being built in China with a subsequent "fit out" occurring in Vietnam, but insisted they were not "Royal Australian Navy vessels, and will be operated and crewed by a civilian vessel operator".
Nick Xenophon slams the decision to have new Army dress uniforms manufactured in China, despite Defence saying the option represents the "best value for money".
A Department spokesperson told the ABC it is "retaining the option to crew the vessels in rare situations such as emergencies" and that similar tug boats have "provided harbour support to Defence for more than 10 years".
Defence has declined to comment on if any possible Australian build options were examined, or whether the new 50-foot tug boats would be used to support visiting international warships.
Responding to the revelations, the Opposition said Defence Minister Richard Marles had "serious questions to answer" including what he knew of the Chinese build and any security mitigations that might be needed.
"Did Australia's Defence Minister give the green light for two Royal Australian Navy vessels to be built in a Chinese shipyard or was he not across his brief?", Opposition Defence spokesman Andrew Hastie demanded to know.
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This is just another example of shocking mismanagement of Defence under the Albanese Government, and why Labor cannot be trusted with Australia's national security.
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Mr Marles is yet to respond but in 2016 Labor heavily criticised the then Coalition government after the ABC revealed
Last year, a Damen design was selected as the preferred option for the Australian Defence Force's new Landing Craft Heavy fleet, with eight of the vessels to be constructed in Western Australia by Austal.