# BAE Systems Awards Insulation Contract in Australia

CBG Systems, a Tasmanian small-to-medium enterprise, has secured an **$83 million** subcontract from prime contractor BAE Systems Maritime Australia to supply and install fire, thermal, and acoustic insulation systems for the first three Hunter-class frigates being built for the Royal Australian Navy. This contract supports the ongoing naval shipbuilding program at Osborne Naval Shipyard, highlighting significant opportunities for local suppliers within Australia's defense industrial base.

- The contract covers insulation systems for HMAS Hunter, HMAS Flinders, and HMAS Tasman, reinforcing the multi-vessel scope of the Hunter-class frigate program.
- Procurement professionals should note the emphasis on local SME participation and the strategic importance of the Osborne Naval Shipyard as a hub for defense manufacturing.
- This award signals continued investment in Australia's naval capabilities, creating downstream opportunities for suppliers specializing in shipbuilding materials and systems.
- Industry stakeholders can leverage this development to explore partnerships or subcontracting roles within Australia's expanding maritime defense sector.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Physical Infrastructure
**Published:** September 23, 2026

### Government Entities
- Royal Australian Navy

### Vendors
- CBG Systems (subcontractor)
- BAE Systems Maritime Australia (prime contractor)
- BlueScope Steel (supplier)
- L3Harris (supplier)
- Babcock (supplier)

### Key Quotes
> This is a landmark contract for CBG Systems, and for Tasmanias Defence industry more broadly. The Hunter Class Frigate Program is a truly national endeavour, anditsa proud moment for a Tasmanian SME to be playing sucha central rolein delivering it.
> — Javier Herbon, Managing Director, CBG Systems

### Sources
- [CBG Systems secures contract from prime contractor BAE Systems Maritime Australia to supply insulation systems for Australia’s Hunter-class frigates

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