Austal will build and deliver over two dozen landing craft for the Australian Army under a strategic shipbuilding agreement with Canberra.
Under the agreement, Austal subsidiary Austal Defence Australia will serve as the prime contractor for the Australian Army’s two LAND 8710 programs: Landing Craft Medium and Landing Craft Heavy.
A total of 18 vessels are expected to be built for the first program and eight for the second.
Project Land 8710 – Littoral Manoeuvre Vessels – intends to equip the Australian Army’s three new Littoral Lift Groups, which will be based in Queensland and the Northern Territory.
The program’s final contractual arrangements are being discussed.
“The government’s approval of the SSA is a defining moment for Austal,” Austal CEO Paddy Gregg said.
“It will establish Austal Defence Australia as the Commonwealth of Australia’s strategic shipbuilder for Tier 2 vessels in Western Australia and reflects both Austal’s excellent defence shipbuilding record and the capabilities that Austal possesses to help the Australian Government to achieve its defence objectives.”
The 18 medium landing craft are expected to be delivered over the program’s eight-year period, while the delivery schedule for the landing craft heavy program is yet to be determined, but is expected to be much longer.
The contract for the Landing Craft Medium program is expected to be finalized in the first quarter of fiscal 2026.
It is expected to cost around 1.3-billion Australian dollars ($840 million), with both programs expected to create 1,100 direct jobs and more than 2,000 indirect jobs.
The medium vessel is expected to weigh around 500 tons, while the heavy craft is expected to weigh between 3,000 and 5,000 tons.
Damen’s Landing Ship Transport 100 has been chosen as the preferred design for the landing craft heavy program.
“The Commonwealth seeks to ensure Australia’s Defence procurement possesses sovereignty and greater certainty and resilience across the naval ship supply chain in an increasingly complex strategic environment and in alignment with the Commonwealth’s continuous naval shipbuilding policies,” Gregg added.
“Through the SSA (strategic shipbuilding agreement), Austal is committed to helping the CoA (Commonwealth of Australia) meet these objectives while establishing Austal Defence Australia as the CoA’s shipbuilder of choice in WA (Western Australia).”
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