Strategic Shipbuilding Agreement

Continuous naval shipbuilding and sustainment by Australian companies is vital to safeguarding Australia’s national maritime security and sovereignty.

Image of RADM Michael Houghton, Head Patrol Boats and Specialist Ships, Naval Shipbuilding and Sustainment Group (NSSG), Department of Defence and Paddy Gregg, Austal Limited CEO signing the Strategic Shipbuilding Agreement (SSA) between the Commonwealth and Austal Defence Australia on 28th August 2025. (Photo credit: Australian Department of Defence)

On 28th August 2025, Austal and the Commonwealth of Australia (CoA) formally entered into a Strategic Shipbuilding Agreement (SSA) that establishes a framework under which a new, wholly owned subsidiary of Austal Limited (ASX: ASB), Austal Defence Australia will design, construct, integrate and deliver key naval shipbuilding programs, starting with the LAND8710 Landing Craft Medium (LCM) and Landing Craft Heavy (LCH) projects for the Australian Army.

Subject to final contractual negotiations, these projects are expected to deliver:

18 x Landing Craft, Medium, over 8 years (contract finalisation is expected Q1 FY2026)
8 x Landing Craft, Heavy, (contract finalisation is expected by end of calendar year 2025)

Learn more about the SSA from the Department of Defence datasheet

Landing Craft Medium

With a range of up to 2,000 nautical miles (when operating with Landing Craft Heavy) the Landing Craft Medium vessels can transport up to 90 tonnes - equivalent to four High Mobility Artillery Rocket Systems (HIMARS), or one main battle tank, or one infantry fighting vehicle and two Bushmasters. This is similar to the capacity of large aircraft such as a C-17 Globemaster. These landing craft will be supported by the Amphibious Vehicle Logistics which can navigate over beaches and through waterways that may be clogged with obstacles and debris.

Landing Craft Heavy

Damen's Landing Ship Transport 100 (LST100) has been selected as the design to provide a new capability which is essential to the restructure and re-posture of the Australian Army. The Landing Craft Heavy vessels will support a strategy of denial which includes deploying and sustaining land forces with long-range land and maritime strike capabilities in littoral environments.

The LST100 vessel design has a 3,900-tonne displacement, is 100 metre long and 16 metres wide. It will operate with other vessels to undertake a range of tasks including troop insertion and extraction, logistics movements and humanitarian assistance and disaster relief. The vessel will be capable of carrying more than 500 tonnes of military vehicles and equipment – it is intended to carry six Abrams Tanks,11 Redback Infantry Fighting Vehicles or 26 HIMARS - and will be fitted with self-defence weapons systems and Australian military communications.

Partnering with industry to deliver amphibious capability

The SSA with Austal Defence Australia will help strengthen Australia’s sovereign naval shipbuilding capability while delivering real benefits to industry, workers and the community.

By streamlining contracting and supply chain processes, the SSA supports faster delivery of capability to the Australian Defence Force, while providing greater certainty for workers and businesses in the Western Australian shipbuilding industry.

Through this partnership we will:

Drive new investment into the Henderson Defence Precinct’s industrial capability
Build a continuous shipbuilding pipeline of vessels, that reduces delays and maintains project momentum
Give suppliers, subcontractors and investors confidence in long-term collaboration opportunities
Enable long-term workforce planning and skilled job creation
Strengthen engagement with the local community

Become a supply chain partner