NBN awards $1.6B equipment contracts to Australian employers
NBN Co has awarded three equipment contracts worth over $1.6 billion to Australian located companies to supply passive network infrastructure to build the national broadband network during the next five years.
Victorian fibre optic equipment manufacturer, Warren & Brown Technologies has been awarded an equipment contract worth up to $110 million over five years to provide optical distribution frames and sub-racks that will connect NBN's equipment to external cabling.
The company has also awarded a contract for multiple types of equipment worth up to $1.2 billion over five years to Corning, a world leader in the manufacture of fibre optic cabling. It will work with Corning who will enhance their Australia-based manufacture and assembly capacity to meet the needs of the NBN rollout.
NBN awarded a third equipment contract worth $300 million over five years to Prysmian, a global manufacturer of telecommunications cabling with manufacturing facilities in Dee Why and Liverpool, NSW.
Chief executive Mike Quigley said: "NBN Co is pleased to award these contracts to three companies that are leaders in their fields and to increase local investment in Australian manufacturing.
"NBN Co is pleased to be working with a 100 per cent Australian-owned company in Warren & Brown and two global manufacturers in Prysmian and Corning both of whom have significant investments in Australian operations and who are able to leverage their global research and development spend and provide reliable, high quality and durable products.
"Part of our purchasing strategy is to make a substantial up front purchase commitment to encourage suppliers to invest in their Australian supply chain ramp-up as we head to volume rollout. They can invest with confidence in plant, equipment, recruitment and training to meet the needs of our national project," mr Quigley said.
NBN is in the process of awarding a range of contracts for other components of its passive network infrastructure such as pits and pipes with further announcements expected during early 2011.