Austal to Build Landing Craft for Australian Army

Austal Defence Australia has been named prime contractor to deliver 18 Landing Craft Medium and 8 Landing Craft Heavy vessels for the Australian Army.

The government on Tuesday approved a Strategic Shipbuilding Agreement (SSA) with Austal Limited, appointing its new subsidiary, Austal Defence Shipbuilding Australia, as the country’s strategic shipbuilder for Tier 2 surface combatants at Henderson, Western Australia.

Austal Defence Australia will be responsible for the two projects: 18 Landing Craft Medium (LCM) vessels and 8 Landing Craft Heavy (LCH) vessels. Contracts for the LCMs are expected to be signed in early FY2026, with delivery of all 18 vessels by 2032. The LCH project is expected to follow later in 2025.

The SSA will run for up to 15 years and includes provisions for the Commonwealth to hold a ‘Sovereign Share’ in Austal Defence Australia. The agreement allows the government to step in if there is a change in control or ownership of Austal.

Austal will manage design, construction, testing, and delivery. The company expects to use local suppliers and develop a continuous shipbuilding capability in Western Australia.