South Australia to sell Techport facility

The South Australian government has agreed to a $230 million deal to sell its Techport shipbuilding facility to the federal government.

The facility was opened in 2010 to support the state's push for more defence shipbuilding contracts.

Premier Jay Weatherill says the deal will allow for the swift start to new projects including the offshore patrol boats, frigates and the next fleet of submarines.

Mr Weatherill says SA has agreed to terms for the sale of Techport to a federal government business enterprise, and withstood a push by the commonwealth for the state to hand over the facility and its land for free.

"Our state is now recognised as Australia's best shipbuilder and is widely acclaimed for its world class standards of construction, maintenance and sustainment," the premier said.

"It's become a feature of how South Australia makes its own way, by backing its own resourcefulness and standing by its workers."

The Techport facility has most recently been used in the construction of the navy's three new air warfare destroyers.