Shipbuilder Austal Defence Australia has been awarded a contract to construct eight Landing Craft Heavy (LCH) vessels for the Australian military, valued at approximately $4 billion AUD (around $2.82 billion USD). The announcement, made today, marks a significant step in enhancing Australia’s military capabilities. The vessels, each measuring 100 meters (328 feet) in length, will be built at the Common User Facility in Henderson, Western Australia, with construction expected to begin later this year.
According to Austal Limited CEO Paddy Gregg, this contract underscores the strengthening presence of Austal’s operations in Australia and the overall growth of the national shipbuilding industry. Although the specific timeline for the initial delivery of the vessels was not disclosed, the contract stipulates that the final vessel is set to be delivered by 2038.
Enhanced Capabilities and Future Prospects
The LCH vessels will each have a capacity to transport up to 200 soldiers alongside six M1 Abrams tanks or nine Redback infantry vehicles. Australia’s Department of Defence stated that these vessels will significantly bolster the country’s amphibious capabilities and contribute to humanitarian and disaster relief operations. The vessels will have a payload capacity of 500 tonnes, further enhancing their operational flexibility.
This latest contract falls under Australia’s Project Land 8710 Phase 2 program, which aims to upgrade the military’s transport capabilities. This is not the first collaboration between Austal and the Australian government; Austal was previously selected to build medium landing craft at the Henderson Defence Precinct during the first phase of the project.
In addition to the LCH project, Austal is positioned as a pivotal player within the Henderson Defence Precinct. The area is set to be the site for the construction of eight Mogami-class frigates for the Royal Australian Navy (RAN), alongside facilities for future nuclear-powered submarines.
Strategic Outlook and Challenges
Austal’s recent achievements come on the heels of a strategic shipbuilding agreement established with the Australian government in August 2025. This agreement aims to create a continuous pipeline for shipbuilding, encompassing design, construction, integration, and delivery of key military programs.
Despite the positive news, Australian Minister for Defence Industry Pat Conroy cautioned that Austal must prove its value as a contractor for the frigate project. In a radio interview, he stated that the company needs to demonstrate ongoing efficiencies and productivity within the naval shipbuilding domain. “They have to demonstrate a value for money,” Conroy noted, emphasizing that while Austal has a strong position, success is contingent on the delivery of the two landing craft projects.
As the Australian military continues to invest in its capabilities, the partnership with Austal highlights a significant commitment to enhancing national security through domestic production. The successful execution of these contracts will not only support military operations but also bolster local employment and industry expertise in shipbuilding.
