Latest news with #shipbuilding
The Guardian
an hour ago
- Business
- The Guardian
Australia pays US another $800m for Aukus amid Trump administration review of security pact
Australia made a second $800m payment to America's shipbuilding industry – bringing total payments so far to $1.6bn which was promised before the Trump administration placied the Aukus agreement under review. As part of the Aukus deal – in which Australia would buy nuclear submarines from the US ahead of its own nuclear submarines being built in Adelaide - Australia has agreed to pay about $4.6bn towards boosting US shipbuilding capacity. After decades of under-investment, the US has fewer nuclear submarines than it needs for its own defence, and is building them too slowly to replace its ageing fleet, potentially jeopardising the sale of any submarines to Australia. The office of Australian defence minister Richard Marles has confirmed the second $800m payment was made in the second quarter of 2025 to boost US boat-building, with payments occurring 'in line with Australia's commitment to contribute US$2 billion by the end of 2025'. A further payment is due later this year. 'When the AUKUS pathway was announced in March 2023, Australia was clear that we would make a proportionate contribution to the United States industrial base,' a defence spokesperson said 'Australia's contribution is about accelerating US production rates and maintenance to enable the delivery of Australia's future Virginia class submarines.' Anthony Albanese confirmed the payment was made as part of an agreed schedule, committed to before the US announced its review of Aukus. 'There is a schedule of payments to be made, we have an agreement with the United States as well as with the United Kingdom, it is about increasing the capacity, their industrial capacity, and as part of that, we have Australians on the ground, learning the skills so that when it comes to the SSN Aukus, the submarines being built here in Australia, we have those skills.' Australia is also paying the UK about $4.6bn to assist its shipbuilding industry. In June, US president Donald Trump ordered a review into the Aukus deal signed by his predecessor Joe Biden. The review is being headed by the Pentagon's under secretary of defense for policy Elbridge Colby, who has previously declared himself 'skeptical' about the deal, fearing it could leave US sailors exposed and under-resourced. There is speculation the review could demand further financial contributions – or political commitments such as support in a conflict over Taiwan – from Australia in exchange for the sale of nuclear submarines and transfer of nuclear technology. The US defense secretary, Pete Hegseth, has already asked Australia to lift its overall defence spending to 3.5% of GDP, from its current level of 2%. The US has been demanding similar increases from other allies, including Nato countries. One of the most significant concerns over Aukus in the US is the naval superpower's capacity to spare any submarines to sell to Australia: the first sale is forecast for 2032. The Aukus agreement mandates that before any submarine can be sold to Australia, the US commander-in-chief – the president of the day – must certify that America relinquishing a submarine will not diminish the US navy's undersea capability. The US's submarine fleet numbers are currently a quarter below their target and the country is producing boats at half the rate it needs to service its own needs, US government figures show. Marles told parliament in question time that Aukus would deliver Australia a 'long-range submarine capability' required for a more contested region and world. 'We are living in a more volatile world with increasing challenges… we need a defence force which will give pause for thought for any potential adversary which seeks to coerce us.' The head of the Australian Submarine Agency, Vice-Admiral Jonathan Mead, told senate estimates in February this year Australia's funding to the US industrial base was a vital element of the Aukus deal. 'This contribution will help uplift the US submarine industrial base capacity and accelerate sustainment and production to enable the delivery of Virginia class submarines to Australia. 'Australia's contribution to the US submarine industrial base is to benefit both the United States and Australia.'
ABC News
7 hours ago
- Automotive
- ABC News
Incat signs deal to build two electric ferries bound for Denmark
Incat has just signed the biggest contract in the company's history, according to founder and chair Robert Clifford, for two electric ferries bound for Denmark. The ships are 129-metres long and hold approximately 500 cars and 1,400 passengers each. Speaking on Hobart Breakfast, Clifford claims that the need for electric vehicles will continue to grow, and while building them in Tasmania will be possible, it will require training more people. "There's very very few people in the world that have the skill to build aluminium ships. ... The expertise in the major shipyards is just not there. "No doubt we can do it here. There will be limits ... but we certainly can build up to multiple numbers, five to ten times larger than we are today." Incat is currently building electric ferries at Prince of Wales Bay, but are planning new facilities at Sorell Creek where they hope to build four ships per year.
NHK
a day ago
- Politics
- NHK
North Korea starts building third new-class destroyer: State media
North Korean media say the country has begun building its third new-class destroyer, reportedly capable of carrying ballistic missiles. Tuesday's edition of North Korea's ruling Workers' Party newspaper Rodong Sinmun reported that employees of a shipyard in the western city of Nampho had gathered to start building another 5,000-ton destroyer. The newspaper said the workers aim to finish building the vessel by October 10 next year, the anniversary of the founding of the ruling Korean Workers' Party. North Korea has launched two destroyers of the same class this year, said to be capable of carrying ballistic and cruise missiles. The North's leader Kim Jong Un has said he plans to build two destroyers of the same or even larger class every year. South Korean experts have noted that the destroyers' air defense and missile systems appear to resemble those of Russia's. This has fueled speculation that Moscow is providing technological and equipment support in exchange for ammunition and troop deployments from Pyongyang. In May, a ceremony was held to mark the launch of the second destroyer, but it tipped onto its side and partially submerged. The incident drew sharp criticism from the North Korean leader. The vessel was said to be launched in June following repairs.
Arab News
a day ago
- Politics
- Arab News
North Korea vows to build new navy destroyer by October 2026
SEOUL: North Korean officials and shipyard workers pledged to complete construction of a new navy destroyer warship by October 10 next year, state news agency KCNA reported on Tuesday. Video footage from North Korea's state-run television KRT accompanying the news showed shipbuilding workers standing to attention listening to speeches at the Nampho shipyard, as well as several cranes and people nearby working with safety helmets and uniforms. In June, North Korea restored a 5,000-ton destroyer that was damaged during an earlier failed launch attempt, with leader Kim Jong Un pledging a more modern naval fleet to enhance the country's maritime power in the Pacific Ocean against what he said were provocations by the United States and its allies, according to KCNA.
CBS News
a day ago
- Business
- CBS News
Stockton mayor pitches national shipbuilding hub idea to Trump administration in D.C.
Stockton Mayor Christina Fugazi is in Washington, D.C. right now putting on a shipbuilding show for the Trump administration as she pushes for the city to be the next national hub for shipbuilding in the U.S. "So right there, the Capitol, I wish I could show you the White House because actually we're having meetings in the White House as well," Fugazi said. Mayor Fugazi spoke to CBS Sacramento from her hotel room in Washington, D.C., where she is traveling to tout her city to the Trump administration. "We're ready to go," Fugazi said. "Some people have said this could take years, but we're talking about a year." "The west complex is where all the shipbuilding happened back in World War II," Port of Stockton Director Kirk DeJesus said. DeJesus drove CBS Sacramento around the Stockton port in March, showing the possible new prime real estate for a U.S. maritime revival. Some of the old Navy buildings are still standing. The port also sits on 4,000 acres of land. "We have the acreage, we have the docks, we have access to the freeways, to rail, I mean, we're just a prime location," Fugazi said. "How do you think the relationship between the President and the Governor could impact this decision?" CBS Sacramento's Steve Large asked. "I think it has the potential to impact the decision," Fugazi said. "We can't rule out the politics. We definitely need to make sure that we are selling them on the location, that we have the workforce, that we have the space available." San Joaquin County voted for President Trump in the November election. Mr. Trump issued an executive order in April calling for a "maritime action plan" to be in place by the end of the year, with the goal of relaunching the U.S. shipbuilding industry. He cited data showing the U.S. currently builds only 1% of the world's ships. Mayor Fugazi's message to the president is that Stockton is ready to build ships now at full steam ahead. "So if we had an opportunity for a face-to-face, man, I'm bringing my 'A game,' and they're going to want to come out to Stockton, they're gonna want to visit our area because I'm going to sell it." On the mayor's itinerary in Washington, D.C., she is meeting with the Army Corps of Engineers, the National Security Council, the Navy, and a U.S. shipbuilder. She said the next step would be the Trump administration taking a tour of the Port of Stockton so they could see the shipbuilding possibilities themselves.
