Austal awarded $4 billion contract to build eight Landing Craft Heavy vessels for Australia

By Martin Chomsky (Defence Industry Europe)

Austal Limited announced that its subsidiary, Austal Defence Shipbuilding Australia Pty Ltd, has been awarded an approximately $4 billion contract to construct eight Landing Craft Heavy vessels for the Commonwealth of Australia. The award was made under the Strategic Shipbuilding Agreement following announcements by Deputy Prime Minister and Minister for Defence Richard Marles and Minister for Defence Industry Pat Conroy.
Image: Austal.

Austal Limited announced that its subsidiary, Austal Defence Shipbuilding Australia Pty Ltd, has been awarded an approximately $4 billion contract to construct eight Landing Craft Heavy vessels for the Commonwealth of Australia. The award was made under the Strategic Shipbuilding Agreement following announcements by Deputy Prime Minister and Minister for Defence Richard Marles and Minister for Defence Industry Pat Conroy.

 

The contract is scheduled to be executed at Henderson in Western Australia, with Austal to confirm execution in a separate announcement to the ASX. Construction of the vessels, based on the Damen LST100 design and measuring approximately 100 meters in length, is set to begin in 2026, with delivery of the eighth and final vessel planned for 2038.

The ships will be built at Austal’s facilities and the Common User Facility at Henderson. According to the company, the Landing Craft Heavy vessels will provide the Australian Defence Force with a maritime capability supporting amphibious operations, logistics, humanitarian assistance and disaster relief across Australia’s region of interest.

Austal Limited Chief Executive Officer Paddy Gregg said the award reinforces the company’s position as the Commonwealth of Australia’s sovereign shipbuilder and a partner to the Australian Defence Force. He stated that the contract generates a record order book for Austal, provides a long-term demand signal for the supply chain, and creates incentive to invest in capability.

 

 

“This contract represents another significant investment in Australia’s sovereign shipbuilding capability – and Austal Defence Australia is ready to deliver these highly capable vessels to support the ADF’s operational requirements,” Gregg said. “Constructing the Landing Craft Heavy vessels at Henderson will create and develop thousands of new, skilled jobs in Western Australia and provide further opportunities for the local defence industry supply chain.”

Gregg also addressed the geographic balance of the company’s defense portfolio. “While Austal’s US business has traditionally accounted for a large share of our defence order book in recent years, this contract reflects the growing strength and success of Austal’s Australian operations — and Australian industry — within the national shipbuilding and sustainment enterprise. This LCH construction contract balances out the split and provides greater geographic diversity of earnings. It also provides earnings and employment stability for the next 12 years.”

Gavin Stewart, Executive General Manager – Strategic Shipbuilding at Austal Defence Australia, said the Landing Craft Heavy program is the second major construction contract awarded under the Strategic Shipbuilding Agreement, following the $1.029 billion Landing Craft Medium design and build contract awarded in December 2025. He said both programs represent extended shipbuilding activity in Western Australia.

 

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“With Landing Craft Medium and Landing Craft Heavy contracts now underway, there are outstanding opportunities for people and businesses to engage with Austal Defence Australia, and our industry and supply chain partners, to help deliver new capability for Australia. Austal Defence Australia is looking forward to expanding and developing the industrial capabilities at Henderson and beyond, into a reliable shipbuilding enterprise to support the Commonwealth’s objectives of sovereign shipbuilding capability,” Stewart said.

“These Programs under the Strategic Shipbuilding Agreement represent decades of continuous naval shipbuilding work, to be delivered here in Western Australia,” he added. The Landing Craft Heavy vessels are expected to have a beam of 16 meters, a displacement of approximately 3,900 to 4,000 tonnes, and capacity for more than 200 embarked soldiers as well as heavy armored vehicles, including up to six M1A2SEP3 Abrams tanks or nine Redback infantry fighting vehicles.

The company also noted that Austal USA is currently constructing up to 12 Landing Craft Utility vessels for the U.S. Navy at its Mobile, Alabama shipyard. The ASX announcement was approved and authorized for release by Paddy Gregg, Chief Executive Officer of Austal Limited.

 

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