Coalition hints British company likely to build air warfare destroyers

The Abbott government appears to be laying the ground for the British defence giant BAE Industries to take the lead on an $8.5bn contract to build air warfare destroyers.

The defence minister, David Johnston, told the ABC on Wednesday that no decision had yet been made to sideline the ASC – Australia’s largest shipbuilding company – from the air warfare destroyers project.

But he gave a significant hint the shift was on the cards.

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