Austal has secured a contract valued at A$1.029bn ($680m) to design and construct Landing Craft Medium (LCM) vessels for the Australian Army, as part of a broader agreement with the Commonwealth of Australia.
The contract, awarded under the Strategic Shipbuilding Agreement (SSA), appoints Austal Defence Shipbuilding Australia, a subsidiary of Austal, to design and build 18 LCMs.
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The construction of these vessels at the company’s Henderson shipyard in Western Australia is set to begin in 2026.
According to Austal, the final unit set for delivery in 2032.
The LCMs, capable of carrying loads up to 80 tonnes (t), will be fabricated from steel.
Austal CEO Paddy Gregg said: “This Landing Craft Medium design-and-build contract awarded to Austal Defence Australia is the first vessel construction programme in the Government’s commitment to delivering continuous naval shipbuilding at Henderson, Western Australia, enlivening decades of opportunity for individuals and businesses to engage, collaborate and invest in defence programmes.
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By GlobalData“With these 18 Landing Craft Medium and any further vessels planned as part of the Strategic Shipbuilding pilot programme, we are developing the shipbuilding capability to build larger, more complex vessels, in Henderson into the future and delivering sovereign shipbuilding capability for Australia.”
In August 2025, Austal Defence Australia became the primary shipbuilder for Tier 2 surface combatants in Western Australia through an SSA with the Australian government.
The agreement outlines Austal’s role in designing, constructing, procuring, testing, and accepting vessels while focusing on cost efficiency and process improvements.
The SSA sets the stage for Austal Defence Australia to embark on key naval projects, starting with the LAND8710 LCM and Landing Craft Heavy programmes.
In a separate development, Austal announced an extension to its contract for building two additional Evolved Cape-class Patrol Boats for the Australian Border Force. bringing the total number of such vessels contracted to 14.
This new contract is valued at over A$135m.
Furthermore, last month saw Austal and ASC, Australia’s sovereign submarine partner, sign a memorandum of understanding aimed at advancing additive manufacturing technologies.
This partnership is expected to enhance Australia’s naval capabilities by supporting both Collins-class and US-built Virginia-class submarines through improved manufacturing and workforce development efforts.
