Naval contract picked to fuel local jobs

By ELLEN READ

The Australian company likely to build the Navy's new patrol vessels is expecting $200 million of work to be spread among more than 100 New Zealand companies over the next three years.

Robert Salteri, chief executive of Melbourne-based Tenix Defence, says that as soon as a contract is signed with the Government, work will begin on seven new vessels for the Navy.

"People could be working by August."

The privately owned company was named last month as the preferred bidder for the $500 million project. Barring any major disagreements, it should sign a contract within three months.

The rest of the Project Protector contract will be spent on specialist requirements from overseas suppliers.

The largest of the new Navy vessels - a 131m, 8000-tonne multi-role vessel - will be built in the Netherlands.

The major modules of the two 1500-tonne 85m offshore patrol vessels will be built in Whangarei, as will the four complete 350-tonne 55m inshore patrol ships.

Tenix owns a shipyard in Whangarei, which was used to build a large share of the modules for the Anzac frigates, the last of which was launched only weeks ago in Melbourne.

Tenix's Anzac project placed $800 million of work with companies throughout New Zealand.

Salteri said this benefited not only the manufacturing firms involved but also their workers, the subcontractors who supported them, and retailers and other service providers in the towns and cities.

Of the $800 million, around $160 million went to more than 250 businesses in the Auckland region.

Nationally, around 500 New Zealand companies provided manufactured components.

When Whangarei work on the Anzac project came to an end last year the yard was scaled back, with the workforce dropping to 20 from over 100.

Salteri said the numbers will increase when Project Protector work began but he was reluctant to estimate numbers. "But at the end of the day that's not where the majority of the New Zealand work will be done. Most of it will come through suppliers," he said.

Salteri said despite the contract not yet being signed, many of the companies that supplied the Anzac project, along with new firms, had contacted Tenix to ask about registering as suppliers or contractors.

He believes Tenix's history with the Anzac frigates in using so many New Zealand companies helped it secure the position as Government favourite.

And while maintenance and support details for the new vessels have not been finalised, the fact that so many of the components will have come from local firms will help secure ongoing supply work for the companies involved.