Sonar for Australia's next class of submarines will be developed in Tasmania after a deal was struck between the University of Tasmania and defence company Thales.
The international defence prime will sign a memorandum of understanding with UTAS and the Australian Maritime College on Wednesday, which will see the organisation develop a presence at the Newnham campus.
It is the first major agreement to be struck as the AMC moves towards its transformation to a defence precinct, with $30 million secured as part of the federal election.
Thales Australia, who has an integral role in developing sonar systems for the existing class of Collins Class submarines, has undertaken sonar testing in Tasmania's lakes since 1991, but this agreement seeks to build on that existing partnership.
It's understood Thales Australia will build a state-of-the-art trials and test facility for submarine and surface ship sonar systems using Tasmania's lakes.
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Thales Australia chief executive Chris Jenkins said the company would be working with AMC and industry partners on advanced acoustic measurements to be taken at a wide range of speeds, over a number of distances and with a high degree of precision using equipment designed with the expertise of the AMC.
UTAS vice-chancellor Rufus Black said Tasmania was uniquely positioned to play an important role in the regeneration of Australia's naval capabilities.
"Our relationship with Thales is based on a combination of the distinctive strengths of our people and our facilities and the nature of our island home itself," Professor Black said.
"We have world-renowned expertise in maritime research and engineering, we have state of the art facilities, and we have access to Tasmania's incredible lakes, which are vital to our work with Thales.
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"Our advantage lies not just in who we are and what we can do, but also where we are."
Premier and Defence Minister Will Hodgman said the announcement of the MOU was another important step in securing a larger slice of the national shipbuilding program.
He said the government was committed to building up Tasmania's role in the national defence industry and the AMC precinct would help create new markets for investment.
The AMC defence precinct was one of the few Northern Tasmanian projects to receive bipartisan support in the federal election.
The world-class precinct is expected to create more than 150 ongoing jobs in the region and transform the existing Newnham campus of the AMC.
The MOU comes on top of a Thales Australia, UTAS/AMC and AMOG consulting agreement last year.
AMC principal Michael van Balen said the MOU would help AMC in its aim to support development of Australia's sovereign shipbuilding capability.
"AMC and Thales' involvement in the precinct will make the niche capabilities and skillsets at AMC available for defence requirements for both Defence and the defence industry," he said.
"As a result, there will be a flow-through of defence spending into the commercial realm in Tasmania whilst we contribute to the broader national defence endeavour."