Austal Limited and ASC Shipbuilding have teamed up for the chance to build SEA5000 future frigates for the Royal Australian Navy.

Construction of the nine ships is to begin in 2020.

"The Austal/ASC Shipbuilding teaming arrangement offers a compelling, low-risk, Australian shipbuilding solution for each of the three shortlisted international designers; BAE, Fincantieri and Navantia," Austal Chief Executive Officer David Singleton said earlier this week in a press release.

"ASC Shipbuilding and Austal represent the success and excellence in Australia's sovereign naval shipbuilding capability, a capability established through years of investment and experience in developing an Australian skilled workforce."

Austal has a strong record in the construction of aluminum ships, while ASC Shipbuilding expertise is in steel warship manufacturing.

One of ASC's latest endeavors is the building of Australia's air warfare destroyers.

"This is a powerful partnership that not only achieves the government's objectives for a sovereign and sustainable shipbuilding capability in Australia, as set out in the recent Naval Shipbuilding Plan, but confirms to all those in the industry that there is a bright and successful future ahead," said ASC Shipbuilding Chief Executive Officer Mark Lamarre.

"Australia deserves an industry that designs, builds, upgrades, maintains and exports naval vessels in Australia, by Australians working for Australian companies that are also headquartered and have ultimate decision-making authority in Australia.

"This agreement delivers on that objective. With our combined strengths, we will deliver the best capability for the Australian Navy and, for the first time ever, we will be on track to building a truly sovereign and sustainable shipbuilding capability for decades to come."

The SEA5000 frigates program is worth about $26.4 billion. The vessels will replace the Royal Australian Navy's fleet of ANZAC-class ships.

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