Duratec Limited’s joint venture with Ertech has been greenlit to begin early procurement for critical infrastructure upgrades at HMAS Stirling, supporting Australia’s future submarine capabilities under the AUKUS partnership.
- Duratec Ertech JV instructed to proceed with $5 million early procurement
- Project supports future submarine capability upgrades at HMAS Stirling
- Full contract award expected in Q3 FY26, with further awards in Q4 FY26
- Infrastructure upgrades align with AUKUS rotational forces arriving in 2027
- Duratec highlights strong partnership with Department of Defence
Early Procurement Signals Momentum
Duratec Limited (ASX, DUR) and its joint venture partner Ertech have received formal instructions to commence early procurement activities valued at approximately $5 million. This move is part of the Early Contractor Involvement (ECI) phase for the planning and design of infrastructure upgrades at HMAS Stirling, Western Australia. The procurement focuses on long lead items essential to maintaining the project timeline.
Strategic Defence Infrastructure Upgrade
The upgrades at HMAS Stirling are critical to supporting Australia’s future submarine capability, a cornerstone of the nation’s defence strategy under the trilateral AUKUS partnership with the United States and the United Kingdom. These infrastructure enhancements will accommodate the arrival of rotational submarine forces from these allies, expected in late 2027.
Project Timeline and Contract Awards
The joint venture anticipates the formal award and commencement of the main project in the third quarter of fiscal year 2026, with a subsequent contract for the delivery of nuclear regulatory compliant facilities expected in the fourth quarter. Early on-site works may begin while the design phase nears completion, underscoring the urgency and strategic importance of the project.
Duratec’s Role and Industry Position
Duratec’s Managing Director, Chris Oates, emphasised the company’s pride in contributing to Australia’s defence infrastructure. The early procurement approval validates Duratec’s critical role and longstanding relationship with the Department of Defence. With a broad footprint across multiple sectors, Duratec continues to leverage its engineering and project delivery expertise to meet complex defence requirements.
Looking Ahead
As the project progresses, the focus will remain on timely delivery and regulatory compliance, ensuring the facilities meet stringent nuclear safety standards. The successful execution of these upgrades will be pivotal in supporting Australia’s strategic defence posture in the Indo-Pacific region.
Bottom Line?
Duratec’s early procurement win at HMAS Stirling sets the stage for a pivotal role in Australia’s evolving defence infrastructure.
Questions in the middle?
- What are the detailed timelines and milestones for the full contract awards beyond early procurement?
- How will Duratec manage potential risks related to design approvals and regulatory compliance?
- What financial impact will these contracts have on Duratec’s revenue and margins in FY26 and beyond?