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The federal government-owned shipbuilder ASC is laying off 223 workers in South Australia ahead of the air warfare destroyer project winding down.
The third and final ship, Sydney, is expected to be ready by late 2019.
An ASC spokesman said up to 223 positions would be reduced by early June.
“The company anticipates that the number of people required to leave the business will be reduced due to transfer opportunities to ASC’s submarine’s business,” the spokesman said.