SA shipbuilder welcomes new plan

Australia's biggest shipbuilder has welcomed the federal government's announcement of a $40 billion, 20-year continuous naval shipbuilding program.

ASC, which is is based at Osborne in South Australia and employs more than 2600 people, says it's pleased the state's shipbuilding capability has been recognised.

"ASC has long been an advocate for a continuous build of naval warships to minimise the effects of the stop-start nature of the industry," the company said in a statement.