Australia announced on Saturday that it had signed a four-year A$2.2 billion (USD1.4 billion) contract with the state-owned sub-builder ASC for upgrading its Collins class submarines.

Defence Industry Minister Pat Conroy stated that the "sustainment agreement" was part of a commitment by the government to maintain a diesel-electric Collins-class Fleet as "a powerful strike and deterrence ability".

Conroy stated that the contract "directly ensures job security for over 1,100 highly-skilled workers" with work being carried out in Henderson, Western Australia and Osborne, South Australia.

Osborne will be the site where ASC, Britain's BAE Systems, and Australia's nuclear-powered subs will build Australia's fleet. This is the core component of 2021's AUKUS agreement between Britain, America, and Australia.

The shipyard will be the place where most of the Collins-class fleet's maintenance is done until the work starts later in the decade.

Conroy stated that the commitment of A$4-A$5 billion by the centre-left Government to submarines is part of its plan to operate them until 2040.