MELBOURNE — Shipbuilder Austal Defence Australia has secured a significant contract to construct eight Landing Craft Heavy (LCH) vessels for the Australian military, valued at approximately $4 billion Australian dollars (around $2.82 billion). The announcement was made today, marking a major milestone for the company’s operations in the region.
The 100-meter (328 feet) vessels will be built at Henderson’s Common User Facility in Western Australia, with construction expected to commence later this year. This project is based on the Dutch Damen LST100 design, which is known for its versatility and capability.
Enhancing Australia’s Military Capabilities
According to Austal Limited CEO Paddy Gregg, this contract underscores the increasing strength and success of the company’s Australian operations within the national shipbuilding and sustainment sector. The vessels will have the capacity to transport up to 200 soldiers and either six M1 Abrams tanks or nine Redback infantry vehicles, significantly bolstering the Australian Defence Force’s amphibious capabilities.
While a specific delivery date for the first vessel has not been disclosed, the final vessel is scheduled for delivery by 2038. The Department of Defence has indicated that these LCHs will feature a payload capacity of 500 tonnes, enhancing Australia’s ability to conduct humanitarian missions and disaster relief operations.
This latest contract falls under Australia’s Project Land 8710 Phase 2 program, which aims to modernize the Australian Defence Force’s capabilities. It follows an earlier decision by the government to select Austal for the construction of medium landing craft at the same facility.
Future Prospects and Strategic Agreements
Austal is poised to play a pivotal role in the Henderson Defence Precinct, which is adjacent to existing shipbuilding and engineering facilities. This location will also serve as the construction site for eight Mogami-class frigates for the Royal Australian Navy (RAN) and will provide contingency docking capabilities for Australia’s future nuclear-powered submarine fleet.
Austal entered into a strategic shipbuilding agreement with the Australian government in August 2025, aimed at establishing a continuous shipbuilding pipeline. This initiative focuses on designing, constructing, integrating, and delivering essential maritime programs for the Australian Defence Force.
Despite this success, Pat Conroy, Australia’s Minister for Defence Industry, emphasized in a recent radio interview that Austal must demonstrate its value for money and maintain efficiency and productivity to secure future contracts, including the frigates. “They are in a good position if they can deliver on the two landing craft projects,” Conroy noted, highlighting the competitive landscape of naval shipbuilding.
The contract with Austal marks a critical step in strengthening Australia’s maritime capabilities and showcases the country’s commitment to enhancing its defence infrastructure. As the landscape of global defence continues to evolve, partnerships like this one will be vital for ensuring national security and operational readiness.
