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Monday, March 30, 2015

Defence Minister prepares plan to save Australian shipbuilding industry

Hobart class DDGAustralia's embattled naval shipbuilding industry will be thrown a lifeline by Defence Minister Kevin Andrews, who will present a plan for continuous construction of warships to avoid periodic job losses and shore up political support across three states.

Mr Andrews will on Tuesday reveal the Abbott government is considering "a continuous build strategy" for more than $100 billion in new warships, submarines and other naval vessels over the next 20 years.

But he will warn that the industry must lift woeful productivity on existing big ship projects, that there may not be room for as many shipbuilders in the future and that warships may have to be retired from service much earlier than is currently the case for the scheme to work.

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