Shipbuilder Austal Defence Australia has secured a significant contract from the Australian military to construct eight Landing Craft Heavy (LCH) vessels. The contract, valued at approximately $4 billion AUD (about $2.82 billion), will facilitate the construction of the vessels at Henderson’s Common User Facility in Western Australia.
Each of the 100-meter (328 feet) long vessels will be based on the Dutch Damen LST100 design, with construction expected to commence later this year. While the announcement did not specify a precise date for the first delivery, it indicated that the final vessel is scheduled for delivery in 2038.
Enhancing Military Capability
The new LCHs, which will each weigh around 4,000 tonnes, are designed to transport up to 200 soldiers alongside either six M1 Abrams tanks or nine Redback infantry vehicles. This capability is part of Australia’s Project Land 8710 Phase 2 program, aimed at bolstering the nation’s amphibious operations and enhancing its capacity for humanitarian and disaster relief missions.
In a statement regarding the contract, Austal Limited CEO Paddy Gregg emphasized the importance of this achievement for both the company and the broader Australian shipbuilding industry: “This contract reflects the growing strength and success of Austal’s Australian operations — and Australian industry — within the national shipbuilding and sustainment enterprise.”
Future Prospects and Challenges
This latest contract follows an earlier agreement under which the Australian government selected Austal to build medium landing craft at the same facility. Additionally, the Australian Department of Defence highlighted that the new LCHs would significantly improve the country’s amphibious capabilities.
Austal is also positioned to play a pivotal role in the adjacent Henderson Defence Precinct, where eight Mogami-class frigates for the Royal Australian Navy (RAN) are set to be constructed. This precinct will also provide docking capabilities for Australia’s future nuclear-powered submarine fleet.
In August 2025, Austal entered into a strategic shipbuilding agreement with the Australian government. This agreement aims to establish a continuous shipbuilding pipeline for the design, construction, integration, and delivery of vital defense programs. Nevertheless, Pat Conroy, the Australian Minister for Defence Industry, cautioned in a recent radio interview that Austal must demonstrate value for money and ongoing efficiencies to secure future projects, including the frigates. “They have to demonstrate a value for money and continued efficiencies and productivity through that continuous naval shipbuilding approach,” Conroy stated, while noting that Austal is positioned well if they can successfully deliver on the two landing craft projects.
The contract marks a significant step forward for Austal and highlights the importance of the Australian shipbuilding sector in meeting the nation’s defense needs as well as enhancing its strategic capabilities.
