Civmec solidifies sovereign shipbuilding capacity and SEA1180 role with Luerssen acquisition

Civmec (ASX: CVL) is set to strengthen its sovereign shipbuilding capacity through a $20 million acquisition of specialist naval shipbuilder Luerssen Australia from parent company NVL Australia.

The cash deal will enhance Civmec’s ability to deliver end-to-end naval shipbuilding solutions from design through to commissioning.

It will also unlock opportunities to drive production efficiencies, accelerate delivery schedules and secure future shipbuilding contracts.

Full ownership

Civmec will take full ownership of the Luerssen Australia business, including $3.6m in plant and equipment, an experienced workforce, established systems and licences and a robust supply chain and subcontractor network.

On completion, the business will offer consolidated services in shipbuilding design, construction and operational expertise under a single, locally-owned entity.

“Our focus now is on ensuring a seamless transition, maintaining program momentum and building a platform for long-term growth in Australia’s naval shipbuilding industry,” Civmec chair James Fitzgerald said.

Federal program

Luerssen Australia came into being as a prime contractor for the Royal Australian Navy’s Arafura Class offshore patrol vessels (OPVs) under the federal SEA1180 program.

The company has gained advanced shipbuilding knowledge and production methodologies from NVL and developed the highly skilled workforce that will now transition to Civmec.

Luerssen’s suite of engineering and training systems tailored to naval construction will also remain in use throughout the program.

Cementing SEA1180 role

Civmec expects the acquisition to cement its role in the SEA1180 program, giving it direct control over program delivery, operational decision-making and future capability development.

Mr Fitzgerald said it would enable the company to scale its defence operations and deliver five OPVs over the next 3.5 years.

“This acquisition supports national objectives to grow Australia’s industrial base and ensures continuity of performance on a strategically important program,” he said.

“With Luerssen’s skilled workforce and established systems, we believe we are well-positioned to deliver on current commitments and pursue future opportunities.”