The Albanese Government is securing a continuous pipeline of shipbuilding work in Western Australian and creating thousands of jobs through the execution of the Strategic Shipbuilding Agreement with Australia's newly established Strategic Shipbuilder, Austal Defence Shipbuilding Australia Pty Ltd.
For too long, the Australian shipbuilding industry has lacked the consistent work needed to develop a competitive and reliable shipbuilding capability. This has had a flow-on effect of hindering the development of Australian-made Defence capabilities and resilience in our shipbuilding industry.
The Strategic Shipbuilding Agreement will provide the framework for a steady pipeline of projects to be delivered by Austal, granted it continues to perform and meet a range of conditions. This arrangement will enable the stability and long-term planning required to accelerate the delivery of sovereign defence capabilities in Western Australia that meet the needs of the Australian Defence Force over the coming decades.
As the Strategic Shipbuilder, Austal will work closely with local industry and supply chains to develop the skills and resources required for this task.
The Strategic Shipbuilding Agreement builds on the already‑established pilot program between Defence and Austal, and will see the delivery of dozens of vessels, including:
- 18 Landing Craft Medium for the Australian Army, and subject to further approvals and negotiations, the build of eight Landing Craft Heavy.
- Two new Evolved Cape class patrol boats for the Royal Australian Navy.
Together, the Landing Craft Medium and Landing Craft Heavy projects are expected to create 1,100 direct jobs and more than 2,000 indirect jobs.
The Strategic Shipbuilding Agreement will also play a vital role in the establishment of a Commonwealth Defence Precinct at Henderson - underpinning tens of billions of dollars of investment in Defence capabilities in the West over the next two decades and supporting in the order of 10,000 high‑skilled jobs.
As one of two major shipbuilding hubs in Australia, Henderson is an asset of national importance and pivotal to the build and sustainment of vessels for the Australian Defence Force.
The Albanese Government is committed to working with the Cook Labor Government to develop the industry, infrastructure and workforce needed to secure continuous naval shipbuilding in Western Australia.
Quotes attributable to Deputy Prime Minister, Richard Marles:
"The Albanese Government is delivering on our promise to grow Australia's shipbuilding and sustainment industry - supporting continuous naval shipbuilding and jobs in Western Australia.
"Implementing the Strategic Shipbuilding Agreement will not only support the delivery of Army's littoral manoeuvre capability, it will also contribute to a strong, sovereign industrial base capable of responding to Australia's evolving needs.
"This is part of our broader investment into the Western Australian economy over the coming decades including at HMAS Stirling and throughout the state's north."
Quotes attributable to Minister for Defence Industry, Pat Conroy:
"The execution of the Strategic Shipbuilding Agreement will secure continuous naval shipbuilding in Western Australia, providing generational benefits for local industry, who play a vital role in keeping Australia safe.
"It also supports the Government's Future Made in Australia agenda, and our commitment to growth within the defence industry, through the delivery of Defence shipbuilding projects on‑shore and boosting our sovereign supply chain.
"The Strategic Shipbuilding Agreement will secure Australia's place in the changing global environment, will help build a stronger and more resilient shipbuilding industry, and will end the boom-bust cycle."
