ASC managing director and chief executive Steve Ludlam has quit and will leave his post this week.

ASC chairman Bruce Carter said Ludlam had decided not to extend his contract after almost five years in charge of the key defence company.

Ludlam’s decision comes at a difficult time for the defence industry in South Australia, with the Federal Government looking to overseas suppliers for several key contracts.

Carter paid tribute to the Ludlam’s work.

“During Steve’s time as head of ASC, we have seen the opening of the $120 million shipyard at ASC South, Osborne; substantial construction of the first Air Warfare Destroyer, HMAS Hobart; consolidation of the second AWD, HMAS Brisbane; the start of block work for Ship 3, HMAS Sydney, as well as strong growth at our submarine maintenance facility at Henderson, in Western Australia,” Carter said.

“Steve has also played a key role in transforming the Collins Class submarine maintenance program, which was described recently by UK expert John Coles as ‘remarkable’ and an ‘astonishing turnaround’.”

Carter said that of the 25 recommendations in the original Coles Review, released in November 2012, 80 per cent had been achieved or were underway.

“On behalf of the ASC Board and our partners in the Air Warfare Destroyer program, I wish Steve well,” Carter said.

ASC’s current General Manager – Collins Class Submarines Project, Stuart Whiley, will become interim Chief Executive Officer.