An agreement that will see shipbuilder Austal build 26 landing craft for the Australian Army and two further patrol boats for the Royal Australian Navy has been struck with the Albanese Australian Government.
As per a Defence Australia press statement, the Strategic Shipbuilding Agreement (SSA) will see the formation of a new subsidiary, Austal Defence Australia.
It will act as the prime contractor for producing 18 Landing Craft Medium (LCM) for the Australian Army, as well as eight Landing Craft Heavy, subject to further approvals.
As per an Austal press statement, the firm expects contracts for the LCM to be finalised early next year, with a view to completing delivery of the ships by 2032. The value of the contract is estimated to be between A$1-1.3 billion ($650 million – $840 million).
The firm expects delivery of the 8 Damen-designed LCH vessels, announced in November 2024, to follow the end of the LCM programme, with contracts agreed by the end of the 2025.
As per the Defence Australia statement, the newly-struck agreement also includes provision for two further Evolved Cape-class patrol boats for the Royal Australian Navy as first announced in November 2023.
The firm has already delivered eight of ten Cape-class patrol boats agreed under previous contracts (up from an initial six vessel-deal struck with Austal Australia in May 2020).
The Australian Government also contracted it to build a further two vessels for the Australian Border Force in December last year.
Austal CEO Paddy Gregg commented: “The government’s approval of the SSA is a defining moment for Austal.
“It will establish Austal Defence Australia as the Commonwealth of Australia’s strategic shipbuilder for Tier 2 vessels in Western Australia and reflects both Austal’s excellent defence shipbuilding record and the capabilities that Austal possesses to help the Australian Government to achieve its defence objectives.”
Australia’s Minister for Defence Industry, Pat Conroy added: “The execution of the Strategic Shipbuilding Agreement will secure continuous naval shipbuilding in Western Australia, providing generational benefits for local industry, who play a vital role in keeping Australia safe.
“It also supports the Government’s Future Made in Australia agenda, and our commitment to growth within the defence industry, through the delivery of defence shipbuilding projects on‑shore and boosting our sovereign supply chain.”
- You can read more details on the Austal website and on the Australian Government website