Australia commits $12 billion to Henderson Precinct to support AUKUS nuclear submarine plan

The government said the investment will support around 10,000 direct jobs over the next 20 years and strengthen opportunities for local businesses. It follows an earlier A$127 million (US$84 million) allocation to upgrade the Henderson shipyard near Perth, with total investment in the precinct expected to reach around A$25 billion (US$16 billion) over the decade.

The Henderson Precinct will become a key hub for shipbuilding and maintenance. It will construct new landing craft for the army and general-purpose frigates for the navy, sustain surface combatant vessels, provide contingency docking for nuclear-powered submarines from the early 2030s, and deliver depot-level maintenance.

Deputy Prime Minister and Defence Minister Richard Marles said: “The Albanese Government continues to increase defence spending to record levels to deliver the capabilities Australia needs. Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway.”

Prime Minister Anthony Albanese said: “Today’s investment is another way we are delivering record defence funding to bolster Australia’s capabilities. This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry. There is no greater honour than serving our country in our nation’s uniform and my Government is dedicated to investing in the defence capabilities our nation requires.”

Under AUKUS, the United States will sell several Virginia-class submarines to Australia, before Britain and Australia jointly build a new AUKUS-class submarine. Washington is currently undertaking a formal review of the deal, though bipartisan leaders in Congress have stressed their strong support.

Minister for Defence Industry Pat Conroy said: “This investment is part of the Albanese Government’s commitment to building our sovereign defence industry and supporting a future made in Australia. Western Australia already plays an important role in the delivery of capabilities for the ADF, and the consolidation of the Henderson precinct will be a significant boost for defence industry in the West. It will support around 10,000 highly skilled, well paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.”

Source: Australian Government (press release).