The Henderson Shipyard south of Fremantle in WA will become the centre of Australian Tier 2 naval shipbuilding under the agreement. Photo: ADF.
The future of naval shipbuilding at Western Australia’s Henderson precinct has been shored up with the Federal Government signing a strategic agreement with Austal Defence Shipbuilding.
The announcement of the Strategic Shipbuilding Agreement was timed to coincide with the Japanese Mogami-class frigate being selected for the Royal Australian Navy’s Project SEA 3000 general purpose frigate requirement.
Austal Defence Shipbuilding Australia Pty Ltd is a newly-established entity of Austal that will focus on the development and building of vessels for Australia.
Austal has previously built Armidale, Cape and Evolved Cape-class patrol boats for the Navy and for Border Force, Guardian-class patrol boats for Pacific nations, and commercial high-speed car ferries. Austal also has a US subsidiary based in Alabama which builds Independence-class littoral combat ships (LCS) and high-speed transport ships for the US Navy.
The government says the new agreement will provide the framework for a steady pipeline of projects to be delivered by Austal as long as it continues to perform and meet a range of conditions.
It says the arrangement will enable the stability and long-term planning required to accelerate the delivery of sovereign defence capabilities in Western Australia that meet the needs of the Australian Defence Force over the coming decades.
It says the agreement builds on the established pilot program between Defence and Austal, and will include the delivery of 18 Landing Craft Medium (LCM) for the Australian Army, a likely follow-on order of eight Landing Craft Heavy (LCH) vessels under Project LAND 8710, and two more Evolved Cape-class patrol boats for the Navy.
Austal will also likely take the lead in building eight general purpose frigates in Australia from ship four onwards, after the first three are built by Mitsubishi Heavy Industries in Japan.
The government says for too long Australian shipbuilding has lacked the consistent work needed to develop a competitive and reliable shipbuilding capability, and that this has had a flow-on effect of hindering the development of sovereign defence capabilities and industry resilience.
The agreement is also designed to play a role in the establishment of a dedicated Commonwealth Defence Precinct at Henderson south of Fremantle, and to underpin investment in Defence capabilities in WA over the next two decades by supporting up to 10,000 skilled jobs.
Defence Minister Richard Marles said the government was delivering on its promise to grow Australia’s shipbuilding and sustainment industry.
“Implementing the Strategic Shipbuilding Agreement will not only support the delivery of Army’s littoral manoeuvre capability, it will also contribute to a strong, sovereign industrial base capable of responding to Australia’s evolving needs,” he said.
“This is part of our broader investment into the Western Australian economy over the coming decades including at HMAS Stirling [naval base] and throughout the state’s north.”
Minister for Defence Industry Pat Conroy said the execution of the agreement would provide generational benefits for local industry.
“It also supports the government’s Future Made in Australia agenda, and our commitment to growth within the defence industry, through the delivery of Defence shipbuilding projects on‑shore and boosting our sovereign supply chain,” he said.
“The Strategic Shipbuilding Agreement will secure Australia’s place in the changing global environment, will help build a stronger and more resilient shipbuilding industry, and will end the boom-bust cycle.”
Austal CEO Paddy Gregg said the government’s approval of the agreement was a defining moment for Austal.
“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,” he said.
“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.
“Through the [agreement], Austal is committed to helping the [Commonwealth] meet these objectives while establishing Austal Defence Australia as [its] shipbuilder of choice in WA.”
