Civmec Relevant ...

Government likes Civmec?

As reported in AFR back in June, the submarine maintenance contract may stay in SA after all..

Spoiler : I’ll hide that story in here for anyone who missed it

https://www.afr. com/politics/federal/submarine-work-likely-to-stay-in-adelaide-20200609-p550rg
Submarine work likely to stay in Adelaide
Andrew TillettPolitical correspondent
Jun 10, 2020 – 12.00am

Major submarine maintenance is likely to stay in Adelaide, thanks to a combination of political pressure and budgetary constraints, with the Morrison government risking the ire of Western Australia over missing out on $400 million a year of taxpayer-funded work.
Defence industry sources believe Prime Minister Scott Morrison has little appetite for the move, as key crossbench Senator Rex Patrick renewed his warning that taking away the 700 submarine jobs from South Australia was a red line and could jeopardise his willingness to co-operate with the government on legislation.

Senator Rex Patrick has warned taking away submarine work from Adelaide would make him less amenable to backing government bills. Ben Searcy
And with the coronavirus pandemic ravaging the nation's finances, a mooted $1 billion price tag to relocate full-cycle dockings of the Collins-class fleet also has government ministers baulking.
Crunch time for the decision is looming in the September quarter, with the French company developing the next generation fleet of submarines needing to know whether the government-owned Australian Submarine Corporation is staying so it can begin construction of the new shipyard.
The Australian Financial Review has been told the Finance Department is opposed to a move. And the powerful Finance Minister Mathias Cormann, who is ASC's sole shareholding minister, is not pushing for the work to go to Perth despite being a WA senator.

"I have always made clear, as have my colleagues, that the government’s decision on the future location of full-cycle docking arrangements will be made based on what is in the national interest," Senator Cormann said.
Industry sources also said the Defence Department had softened on its desire for the work to move west.
"The longer it is delayed, the harder it is to move," a senior government source said. "Now with a dramatically changed budget environment why would we spend the money on moving?"
Crucial swing vote

The government pencilled in making a decision late last year but pushed it off. But first bushfires then coronavirus have seen it pushed further down the agenda.
Defence Minister Linda Reynolds last week appeared to tie a decision on maintenance to broader considerations over the submarine fleet, with the government also confronting the need to extend the life of the six Collins-class submarines and strained relations with Naval Group over the future submarine program.
"Our submarine capability is one of the most strategically important and complex capabilities our Defence Force has," Senator Reynolds said on Tuesday.
"The government's consideration of submarine fleet transition continues. Issues relating to full-cycle docking are yet to be considered."
Defence industry sources say cabinet's national security committee has informally discussed the maintenance decision at least twice but has been concerned about the political ramifications if the work is moved away from South Australia.
Such a decision would be a slap to the state's Liberal government while providing a boon to WA's Labor administration, but also anger Senator Patrick. He and Centre Alliance colleague Stirling Griff share the balance of power when the government needs crossbench backing for bills.
With Mr Morrison flagging a renewed push on industrial relations reform, Senator Patrick looms yet again as a crucial swing vote. He earlier this year suspended his support for the now abandoned ensuring integrity legislation aimed at cracking down on union militancy by linking it in part to the Collins class maintenance decision.
Senator Patrick told the Financial Review protecting the 700 maintenance jobs was not crucial for his state's economy but also had a strong national interest by ensuring the Collins-class submarines remained available for the navy to use.
"I put the same strong argument to the Finance Minister and also made it very clear that if it goes to WA, it will change the relationship I have with the government, which is one generally of co-operation," Senator Patrick said.

That would be a bit of a blow.
This rumour, plus recent legal action against AJM, plus seemingly low revenue from the latest contract with FMG at Iron Bridge (plus noone returning my phone call when I rang to enquire about that) have made me a lot skinnier here
....but still;

Note support for local industry ( potential for CVL?)   06/08/20:
https://infrastructuremagazine.com....very-plan-includes-major-infrastructure-boom/
...... “Major infrastructure project investments are getting a boost under the Western Australian Government’s WA Recovery Plan in order to create jobs and support the economy.
Investments in defence, port and harbour infrastructure, and serviced land to help establish new business and research facilities will deliver a pipeline of jobs for Western Australians as the state recovers from the COVID-19 pandemic.
The Western Australian Government will accelerate infrastructure works to expand the state’s defence industry capability, increasing the state’s already strong footprint in marine repair, maintenance and construction.
This aligns with Western Australia’s commitment to defence industry development and leverage its skills and training.
Western Australian Defence Issues Minister, Paul Papalia, said, “Defence industry projects offer incredible opportunities for the state, and these investments in the AMC will further strengthen our capacity to secure high-value, job-creating work.
“Defence contracts will provide the kind of long-term stimulus the state will need to support our economy as we manage the impacts of COVID-19.
“The State Government is fast-tracking these projects to ensure we have the infrastructure in place to meet the needs of Defence, and continue to enhance the AMC’s reputation as Australia’s key defence industry hub.”

Australian Marine Complex upgrade
Henderson’s Australian Marine Complex (AMC), the state’s major industrial hub, is set for an $87.6 million upgrade.
Western Australian Premier, Mark McGowan, said, “The WA Recovery Plan is focused on creating a pipeline of local jobs to support WA’s economic recovery while putting strong foundations in place to strengthen our industries and plan for the jobs of the future.
“Our investment in improvement works and our state’s infrastructure will boost a range of industries over the short and longer terms, which is a key part of our recovery journey.
“Importantly, the infrastructure and planning upgrades will pave the way for further growth in commercial and industrial precincts, our defence, manufacturing, resources, exports and marine sectors.
“It’s with this strong investment that will give the private industry some confidence that we have a robust recovery plan which we’re implementing, and we hope this spurs the private sector into supporting the economic recovery efforts and that they push on with new projects and developments.”
It is expected that the upgrade will create up to 600 local jobs, boost opportunities for local industry and grow Western Australia’s capacity to undertake future defence work as part of the WA Recovery Plan.
The investment includes a major wharf extension and upgrade, the design of a new finger wharf, a new vessel transfer path, three road intersection upgrades and a new shipbuilding hall........”


And CVL positioning in a new Wind Farm Supply Action Group
https://www.energymagazine.com.au/turbine-manufacture-for-wa/

Spoiler : See here

Imogen Hartmann, August 10, 2020, Energy Networks, News, Projects, Renewables, Spotlight, Sustainability, Wind, 0


The Western Australian Government is launching a feasibility study into local wind turbine component production as part of its WA Recovery Plan.

This is the first time a State Government has explored the local supply chain for wind farms.

The feasibility study will look at supply opportunities for wind farms, market trends and local industry participation opportunities, including component manufacturing, the potential to generate investment, and make recommendations to the State Government.

The study brief also includes investigating opportunities to create jobs in both metropolitan and regional areas.


Western Australian Premier, Mark McGowan, said, “Our WA Recovery Plan is about getting our state back on track, securing a pipeline of work and ensuring Western Australians have more job opportunities for years to come.
“The fact that full wind towers are being imported into the country has restricted job opportunities in manufacturing and fabricating by Western Australian businesses.
“We’re starting to see more international and Australian businesses establish manufacturing facilities on the east coast, however that does nothing for local businesses and local jobs here in WA.

“We have some talented, innovative and willing steel fabricators in Western Australia and we need to look at how we can maximise our expertise and build a pipeline of future job opportunities for Western Australians, just like we are doing with WA-made railcars.”

To support the initiative, the State Government has formed the Local Industry Participation in Wind Farm Supply Action Group, comprising of BlueScope Distribution, the Australian Steel Institute, the Western Australian Regional Development Alliance, the Australian Manufacturing Workers Union and some of the State’s largest steel fabricators including Civmec, Austal Ships, Hofmann Engineering, Pacific Industrial Company and Fremantle Steel.

The group is expected to provide advice and recommendations to the State Government on areas such as:

• Domestic and international market trends and supply chains issues
• The scope for development of manufacturing, installation and maintenance opportunities from wind farm towers and associated infrastructure
• Potential barriers, regulatory impediments or capacity and capability issues impacting on the development of the wind farm supply industry in Western Australia, and provide potential solutions as required
• The form and extent of local capacity and capability essential to meet manufacturing requirements
• Development of investment attraction strategies and/or content targets to strengthen Western Australian industry capability and competitiveness
• Any appropriate facilitation and collaboration that could be provided by the State Government between local businesses and investors and established suppliers

This initiative builds on the latest $92.4 million package to boost local manufacturing in Western Australia to create a pipeline of local jobs.

Other initiatives include the construction of a new diesel car maintenance facility, a study into the manufacturing of iron ore wagons in Western Australia, facilitating the manufacturing of cathode active materials in lithium-ion batteries, local concrete manufacturing and local waste processing capabilities and grants to local industry to make personal protective equipment.

Western Australian Energy Minister, Bill Johnston, said, “Manufacturing parts for wind turbines in WA has never been done before by Government and if it all stacks up then it’s another new pipeline of work for WA.

“WA has the willpower and we stand ready to give it a go in collaboration with industry.
“The study which will be led by the Department of Jobs, Tourism, Science and Innovation and will delve into the feasibility of how we can increase local manufacturing in WA to help in new industries and technology like the renewable energy sector and construction sectors.

“We’ve come out of a pandemic roaring to go and as we get industry back on its feet we’re also looking at opportunities further down the track which secures jobs in WA.”

cheers