The Government Signs Key Contracts for Landing Craft Heavy (LCH) and Landing Craft Medium with Austal Defence Australia
The Australian government has recently strengthened its commitment to enhancing national defense capabilities by signing two significant contracts with Austal Defence Australia. These agreements focus on the construction of Landing Craft Heavy (LCH) and Landing Craft Medium (LCM) vessels, marking an important milestone in the country’s sovereign shipbuilding journey.
Paddy Gregg, Austal’s Chief Executive Officer, emphasized the importance of this contract, stating, “This contract represents another significant investment in Australia’s sovereign shipbuilding capability.” He noted the capacity of Austal Defence Australia to deliver these advanced vessels that will bolster the Australian Defence Force’s (ADF) operational requirements. This move not only highlights the growing strength of Austal’s Australian operations but also underscores the broader resilience of the Australian shipbuilding industry.
With a staggering investment of $4 billion, the government is set to develop the Army’s future LCH littoral fleet. The contract outlines detailed specifications regarding scope, timeline, and materials for the project, which will see eight vessels built at WA’s Henderson Shipyard. These vessels are pivotal for the ADF, designed by Damen Naval and based on the Damen LST100 design, allowing them to transport over 500 tonnes of long-range precision strike weapons and other critical units by sea.
One of the standout features of this contract is its emphasis on fostering local industry. The agreed Australian Contract Expenditure exceeds 60%, a significant boost for local and regional businesses. This investment is designed to stimulate industry growth, prompting further investments in workforce, supply chains, and infrastructure to support the shipbuilding enterprise. Additionally, the initial vessels will be constructed at the Common User Facility (CUF), an important step before the project transitions to a more permanent setup.
The government is also ensuring that non-Defence industries reliant on the CUF facilities are not adversely impacted during this transition. To this end, an initial $30 million has been allocated for the Western Australian Government to commence early works for interim replacement facilities. This proactive measure highlights the government’s commitment to maintaining industry continuity while progressing with the Defence Precinct at Henderson.
Construction for the LCH vessels is slated to begin in 2026, with the final vessel expected to be delivered by 2038. This timeline is aimed at ensuring that the ADF is adequately equipped to respond to contemporary challenges in Australia’s northern approaches, enhancing the country’s overall defence posture.
The Minister for Defence Industry, Pat Conroy, acknowledged that the Landing Craft program would further fortify Australia’s sovereignty in shipbuilding, stating that it would not only support continuous shipbuilding in Western Australia but also ensure that Australia possesses the requisite industrial capabilities to maintain national safety. Conroy also pointed out that the program is expected to create over 1,100 direct jobs and approximately 2,000 indirect jobs, providing a vital and sustained pipeline of work that encourages investment in skills and infrastructure.
This investment follows a key $1 billion contract previously signed with Austal Defence Australia to design, build, and deliver 18 Landing Craft Medium vessels. The combination of these contracts signifies the largest recapitalisation of the Army’s littoral capability since the Second World War, a testament to the government’s strategic priorities in defense.
The expanded littoral fleet is essential for the Army’s rapid evolution under the 2024 National Defence Strategy (NDS). It will significantly enhance the ADF’s ability to project and sustain capabilities while denying adversarial access to strategic regions around Australia. Minister for Defence Richard Marles highlighted that these craft will enhance the Army’s capabilities for amphibious operations, logistics, humanitarian assistance, and disaster relief throughout the region.
Austal Defence Australia provides insights into the LCH’s impressive capacity, stating it can accommodate—all while transporting personnel—six M1A2SEP3 Abrams Tanks or nine Redback Infantry Fighting Vehicles. With an approximate length of 100 meters, these vessels are not just formidable in their purpose but stand as a significant technological advancement in naval capabilities.
Furthermore, it is notable that Austal USA is concurrently engaged in constructing up to 12 smaller Landing Craft Utility vessels for the US Navy at its shipyard in Mobile, Alabama. This multifaceted approach illustrates Austal’s commitment to enhancing naval capabilities both domestically in Australia and internationally.
