L-R: Austal CEO Paddy Gregg and Deputy Secretary, Naval Shipbuilding and Sustainment, Australian Department of Defence, Jim McDowell signing the Heads of Agreement at Austal's Henderson headquarters on November 23, 2023. Image: Austal.
An agreement between Perth-based global shipbuilder Austal and the Federal Government is set to provide long-term work opportunities for WA’s shipbuilding industry, with 18 vessels in the pipeline.
The Government says the deal will secure Henderson’s future as a vital naval shipbuilding complex with the ability to meet the future needs of the Australian Defence Force (ADF).
“A continuous pipeline of work and an efficient, streamlined approach will not only benefit the delivery of Defence capability but create industry confidence to invest in a highly capable shipbuilding workforce in Western Australia,” says Federal Defence Industry Minister Pat Conroy.
“Australian industry can compete with the best in the world, but for too long has suffered the boom-bust cycle of shipbuilding, undermining productivity and workforce retention. This ends with this strategic partnership.”
As part of a pilot project, Austal will build the army’s medium and heavy landing crafts (Littoral Manoeuvre Vessels) at Henderson, subject to commercial negotiations and ongoing performance.
New South Wales shipbuilder Birdon has been appointed as the preferred designer of the medium landing craft capability. A designer for the heavy crafts has not been selected.
In addition, Austal will deliver two new Evolved Cape-Class Patrol Boats for the navy for $157 million.
Experienced, reputable shipbuilder
Austal CEO Paddy Gregg says the company has a proud track record of delivering fit-for-purpose naval vessels to the Government.
In the past five years, it has delivered more than 24 vessels for the Government and other navies around the world.
“That track record, which is a product of our exceptional design and construction teams, provides Austal with the confidence that we can collaborate with the Commonwealth to transition the Heads of Agreement [initial agreement signed] into a Strategic Shipbuilding Agreement (SSA) which benefits the naval industrial base in Australia and Australia’s security,” Gregg says.
“This SSA Heads of Agreement with the Commonwealth is the first step to enliven that blueprint and further develop a world-class, sovereign naval shipbuilding hub that has the capacity and capability to deliver capability faster, meeting the evolving needs of the ADF.”
Hundreds of jobs secured
Gregg says the addition of the Cape Class provides important job security for Austal’s shipbuilders, with 400 initial jobs and up to 800 more jobs for proposed future work.
Signing of the formal SSA is targeted for the last quarter of 2024.
The Government hopes the first of the 18 medium landing crafts will be delivered in 2026, with the heavy landing crafts to be in service in 2028.
The Government also intends to build the heavy landing craft capability through the partnership. Gregg says this will introduce a new build program for Austal at Henderson.
Austal is currently building two classes of vessels for the Government, the Evolved Cape Class patrol boats for the Royal Australian Navy and the Guardian-class patrol boats to be gifted to Pacific Island nations.
This agreement follows the announcement earlier this month on Austal’s partnership with Civmec and Navantia to deliver six navy warships.
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