Austal Finalizes Large Contract to Build Australia’s Landing Craft Heavy
Austal Defence Shipbuilding Australia highlighted the announcement by the government’s Deputy Prime Minister and Minister for Defence, Richard Marles, and Minister for Defence Industry, Pat Conroy, as the finalization of a large contract to build the country’s new Landing Craft Heavy (LCH) vessels. It was expecting to sign the contract, valued at approximately A$4 billion (US$2.8 billion), later on Friday while highlighting it was the second major contract for the company under its Strategic Shipbuilding Agreement (SSA) with Australia.
The Australian Government confirmed the selection of Damen’s Landing Ship Transport 100 (LST100) as its preferred design for the Australian Defence Force’s Landing Craft Heavy project in November 2024, with the vessels to be built by Austal. The design calls for an approximately 100-meter (330-foot) long vessel with approximately 3,900 to 4,000 tonnes displacement. It will have a capacity for over 200 soldiers, plus six Abrams tanks or nine Redback Infantry Fighting Vehicles.
Construction of the Landing Craft Heavy vessels will be undertaken using Austal facilities and the Common User Facility at Henderson in Western Australia. Construction is scheduled to commence in 2026, with the eighth and final vessel scheduled for delivery to Australia in 2038.
“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,” noted Paddy Gregg, Austal Limited CEO.
It is the second major order for the Australian armed forces. Austal also completed in December 2025 a contract for approximately A$1 billion to complete the detailed design and build 18 Landing Craft Medium (LCM) vessels at Austal’s Henderson, Western Australia, shipyard. Construction of the first LCM is scheduled to commence in 2026, with the 18th and final vessel scheduled for delivery in 2032.
Austal has sought to develop its work for the Australian military following its long-standing programs for the United States. It also cited the Strategic Shipbuilding Agreement as a defense when South Korea’s Hanwha Group proposed an acquisition of Austal. Management has questioned whether, because of its role in building for the Australian and U.S. military, a change of control would be permitted. Australia, however, permitted Hanwha to become Austal’s largest shareholder.
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“While Austal’s U.S. 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,” said Austal Defence Australia Executive General Manager – Strategic Shipbuilding, Gavin Stewar.
Austal also notes that Austal USA is presently constructing up to 12 smaller Landing Craft Utility vessels for the US Navy at its Mobile, Alabama, shipyard.
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