The Albanese Government has taken another significant step towards the Australian Army's transformation to a littoral fleet, with the signing of two key contracts for Landing Craft Heavy and Landing Craft Medium.
Together, these contracts - signed with Defence's strategic shipbuilder Austal Defence Australia - represent a major investment in Australia's sovereign shipbuilding capability and is expected to create over 1,100 direct and more than 2,000 indirect jobs, particularly in Western Australia.
The Albanese Government is the first federal Government to commit to continuous naval shipbuilding in Western Australia. These contracts are the next step in delivering on this commitment.
Landing Craft Heavy
The Government is investing $4 billion into Army's future Landing Craft Heavy littoral fleet through a new contract covering the scope, timeline and material requirements that will see eight vessels built at WA's Henderson Shipyard.
These vessels, designed by Damen Naval, will be capable of transporting more than 500 tonnes of long range precision strike weapons and other units by sea, greatly enhancing the Australian Defence Force's amphibious capability and humanitarian and disaster relief.
Importantly, the contract signed today also represents a commitment by the Albanese Government to support a future made in Australia, with an overall Australian Contract Expenditure of over 60 per cent - supporting local and regional businesses and incentivising industry investments in workforce, supply chains and infrastructure.
The first tranche of these vessels will be constructed at the Common User Facility, before the program moves to a permanent location.
As part of the Landing Craft Heavy program, the Government will also make available an initial $30 million for the Western Australian Government to commence early works for interim replacement facilities for non-Defence industries that utilise the Henderson Common User Facility (CUF) to ensure they are afforded ongoing access to infrastructure.
The Albanese and Cook Governments are committed to minimising the impacts to non-Defence industries at the CUF as work continues to deliver the Defence Precinct at Henderson, which will support 10,000 direct jobs over the next two decades.
Landing Craft Medium
This follows the Government and Austal Defence Australia having signed a $1 billion contract to design, build and deliver 18 Landing Craft Medium vessels, further consolidating Western Australia as a national shipbuilding hub.
Together, these milestones for the Landing Craft Heavy and Landing Craft Medium represent the largest recapitalisation of Army's littoral capability since the Second World War.
The expanded littoral fleet is central to Army's rapid transformation under the 2024 National Defence Strategy and will significantly enhance the ADF's ability to hold adversaries at risk, project and sustain capabilities and deny access to Australia's northern approaches.
Quotes attributable to Deputy Prime Minister, Richard Marles:
"The Albanese Government is delivering continuous naval shipbuilding in the West, and the construction of landing craft vessels at Henderson will be the first step.
"These contracts will support thousands of direct and indirect jobs, while also equipping the Australian Army with the capabilities it needs for littoral manoeuvre and to undertake long range land and maritime strike.
"An increased focus on littoral manoeuvre will enable the ADF to respond more effectively in our region and keep Australians safe."
Quotes attributable to Minister for Defence Industry, Pat Conroy:
"The Landing Craft program will further strengthen our sovereign industry, supporting continuous shipbuilding in Western Australia and ensuring Australia has the industrial capability and depth to keep Australians safe.
"The combined delivery of landing craft capabilities is expected to create more than 1,100 direct and 2,000 indirect jobs, providing a sustained pipeline of work that incentivises defence industry investment in skills, supply chains and infrastructure."
