Western Australia has been chosen as one of two locations to construct and maintain up to 21 replacement steel-hulled Pacific patrol boats on behalf of the Australian government.
Western Australian Premier, Colin Barnett, said the state was more than capable of constructing and supplying the ships.
"WA has a strong reputation in these highly competitive and demanding markets and today's announcement is recognition of this," Barnett said.
"From 2020, WA will take over the construction of the Offshore Patrol Vessels (OPV) from South Australia in a contract worth more than $3 billion, creating more than 400 direct jobs.”
Austal Ships was selected as one of the tendered companies to carry out the works at the Australian Marine Complex.
This contract is valued at $500 million and is expected to create around 130 jobs.
"WA has the infrastructure, capability and expertise to participate in future naval defence shipbuilding and submarine programs - our industry is innovative and our workshops are ready,” he said.
"One of these designers, Lurssen from Germany, is in fact currently in WA on a two-day OPV industry engagement program arranged by the Department of Commerce."
Western Australia is home to more than 180 companies with defence expertise.
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