Australian Government has approved the Strategic Shipbuilding Agreement (SSA) with Austal Limited and its newly created subsidiary Austal Defence Shipbuilding Australia (“Austal Defence Australia”), a wholly owned special purpose vehicle and subsidiary of Austal Limited, to serve as the Commonwealth of Australia’s strategic shipbuilder for Tier 2 surface combatants at Henderson, Western Australia, according to the company's release.
The SSA terms have been finalised and the formal SSA and related contract documentation are being prepared for imminent execution.
This follows an earlier Heads of Agreement announced to the ASX on 23 November 2023.
Under the SSA, Austal Defence Australia will act as prime contractor for the LAND8710 programmes comprising the Landing Craft Medium (expected 18 vessels) and Landing Craft Heavy (expected 8 vessels) pilot shipbuilding works, which are under discussions to finalise contractual arrangements. Details of each pilot programme will be announced separately once discussions conclude.
The Landing Craft‑Medium contract is anticipated to be finalised in Q1 FY2026 at a total value of A$1–1.3 billion, with first delivery expected by 2032. Contracts for the Landing Craft Heavy vessels are expected by the end of calendar year 2025.
The recent approval of the SSA follows the broader Australian Government decision to award Mitsubishi Heavy Industries (MHI) a A$10 billion contract to supply Mogami‑class frigates, with three built in Japan and eight constructed at Austal’s Henderson shipyard by Austal Defence Australia.
Austal Limited is an Australian‑registered public limited company listed on the Australian Securities Exchange. Established in 1988 and headquartered at the Australian Marine Complex in Henderson, Western Australia, it is a global shipbuilder and defence prime contractor specialising in the design, construction and support of defence and commercial vessels, including high‑speed craft and warships. It operates major shipbuilding facilities in Australia, the Philippines and the United States.