Civmec eyes Aussie submarine project

Australian heavy engineering firm Civmec is eyeing a piece of an A$50 billion (S$49.8 billion) Australian submarine project.

It said in a Singapore Exchange filing on Friday that it has launched a new defence division and aims to work with the lead contractor appointed to design and build Australia's future submarines.

"Our experience means we certainly have the capability to be their in-country builder," Civmec executive chairman James Fitzgerald said in a statement.

"This is a massive opportunity, not just for Civmec but for Western Australia," he said, adding that the project could create up to 1,000 jobs in the state.

Civmec owns and operates a fabrication facility at Henderson, south of Perth. The company said it will have a dedicated facility for building submarines.

Other potential projects for its new defence unit include maintenance and in-service support of Australian frigates, building of future ships, and defence infrastructure construction, it added.

It has appointed a former Royal Australian Navy Commodore, Mike Deeks, to head the defence unit.

Civmec shares closed flat at S$0.40 on Friday.