Austal awarded $1.03B contract to design and build 18 Landing Craft Medium vessels

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Austal Defence Australia has been awarded the design and build contract for the Australian Army’s Landing Craft Medium. Image supplied by Austal Defence Australia.

Austal Limited has been awarded a $1.029 billion Design and Build Contract for 18 Landing Craft Medium vessels under the Strategic Shipbuilding Agreement with the Commonwealth of Australia, according to a statement released by the company.

The contract appoints Austal subsidiary Austal Defence Shipbuilding Australia Pty Ltd to complete the detailed design and construction of the Landing Craft Medium fleet at Austal’s Henderson shipyard in Western Australia. 

In an ASX announcement, the company said construction of the first vessel is scheduled to begin in 2026, with delivery of the 18th and final vessel planned for 2032.

The Landing Craft Medium vessels are being built for the Australian Army and will be manufactured in steel. 

Austal said the vessels are designed to project loads of up to 80 tonnes, supporting amphibious and logistics operations.

Austal Limited chief executive officer Paddy Gregg described the contract as the first design and build tasking awarded under the Strategic Shipbuilding Agreement and said it marked a milestone for the company’s defence operations in Western Australia.

“This Landing Craft Medium design and build contract awarded to Austal Defence Australia is the first vessel construction program in the Government’s commitment to delivering continuous naval shipbuilding at Henderson, Western Australia,” Gregg said. 

He added that the program would “enliven decades of opportunity for individuals and businesses to engage, collaborate and invest in defence programs”.

Gregg said the Landing Craft Medium program, together with any additional vessels delivered under the Strategic Shipbuilding pilot program, would contribute to the development of local shipbuilding capability. 

“With these 18 Landing Craft Medium and any further vessels planned as part of the Strategic Shipbuilding pilot program, we are developing the shipbuilding capability to build larger, more complex vessels, in Henderson into the future and delivering sovereign shipbuilding capability for Australia,” he said.

Austal Defence Australia executive general manager for strategic shipbuilding Gavin Stewart said the company and its partners were prepared to deliver the project for the Australian Army. 

“The Austal Defence Australia team, and our industry and supply chain partners in the Henderson Defence Precinct, across Western Australia and around the nation, are ready to deliver this important new amphibious capability for the Australian Army,” Stewart said.

Austal said the contract forms part of the Commonwealth’s broader Strategic Shipbuilding Agreement, which aims to support long-term naval construction activity in Australia.

The content of this article is based on information supplied by Austal Ltd. For more information, please refer to the official company announcement and communications from Austal. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.