Babcock Signs $NZ300 million agreement with the New Zealand Defence Force

AUCKLAND, NZ: Babcock International Group has renewed a $NZ300 million agreement with the Government of New Zealand which will see the company deliver through life engineering support services across the New Zealand naval fleet for the next seven years.

Under the renewed contract, Babcock New Zealand will assume the role of Prime Systems Integrator (PSI) for the Royal New Zealand Navy under a five year + two agreement. The New Zealand Ministry of Defence may also access this agreement enabling even greater opportunities for efficiency, cost management and vessel availability for the Navy.

Babcock operates New Zealand’s largest marine engineering and maintenance support facility in Devonport, Auckland, which is also home to the RNZN and its fleet of eleven surface ships. While support of those vessels is the primary objective of the agreement, the site also boasts New Zealand’s largest dry-dock which enables a range of commercial ship maintenance to be undertaken alongside Navy work.

Babcock Australasia Chief Executive Officer Craig Lockhart said the agreement gave the NZDF total “reach back” into the Babcock Marine and Technology Division which supports naval operations around the globe.

“This agreement not only introduces a new and improved commercial relationship but integrates our teams in a way where we can achieve much greater levels of program availability, capability and certainty of delivery at lower cost,” Mr Lockhart said.

“The new arrangement has allowed for significant numbers of New Zealand Naval personnel to be integrated within the Babcock structure providing real benefits to both organisations.”

Babcock is one of the fastest growing engineering support services companies in the Australian market having recently added Australian Helicopters and Bond Helicopters Australia to its portfolio in 2014. The company has 700+ skilled staff working within Australia and New Zealand who design, build, manage, operate and maintain assets that are essential to Babcock customers and their operations.

Babcock has a long history of support for the Royal New Zealand Navy and the Royal Australian Navy. The company’s core business is driving down operating costs and increasing asset availability through both technical and commercial innovation.

Mr Lockhart said the agreement followed months of planning and collaboration between the NZDF and Babcock New Zealand. The company has been based in Auckland, delivering services for Defence and commercial customers.

Babcock New Zealand also owns a separate engineering consultancy, Marine Industrial Design, which provides conceptual, preliminary and contract design services – including structural, mechanical, naval architecture and electrical design elements – for new designs, major modifications and conversions.

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