Today I have agreed to the clear recommendation from the Foreign Investment Review Board to not object to Hanwha's proposal to increase its shareholding in Austal Limited from 9.9 per cent to 19.9 per cent, subject to strict conditions.
My decision was not taken lightly and comes after extensive consultation and long and careful deliberation.
It follows a thorough and robust process that took account of all the relevant economic, national security and other national interest issues.
Hanwha would remain a minority shareholder under this proposal and cannot increase its shareholding above 19.9 per cent.
This decision ensures there are greater protections for our Strategic Shipbuilder and the Government's sovereign interests in Austal.
It is entirely consistent with FIRB's unequivocal advice not to object to the proposal, subject to conditions.
It incorporates advice from relevant agencies including the Department of Defence, the Department of Home Affairs, the Department of Foreign Affairs and Trade and our national security agencies.
If the proposal goes ahead, it would be subject to a number of strict conditions relating to governance, and data information and security, including:
- Limits on Hanwha's access to sensitive information.
- Limits on the storage of sensitive information.
- Stringent criteria on any Hanwha nominee to Austal's board.
These conditions build on the strong safeguards that already apply to Austal Defence Australia as Australia's Strategic Shipbuilder.
Austal is an Australian‑based global leader in shipbuilding and defence capability.
It will continue to play an instrumental role in building Australia's defence industry, strengthening our supply chains and boosting our skills and economic resilience.
It is a key pillar of our plan to boost local manufacturing and industry capabilities and remains an essential part of our Future Made in Australia agenda.
This decision and associated conditions will protect our sovereign interests in this capability and ensure the company can continue to grow, invest, and deliver continuous shipbuilding in Western Australia.
Australia welcomes foreign investment and operates a non‑discriminatory foreign investment framework to ensure foreign investment is in our national interest.
