Austal signs shipbuilding agreement with Australian government

Austal has signed off on a Strategic Shipbuilding Agreement for key Australian naval defence programs.

The agreement appoints Austal’s subsidiary Austal Defence Australia as the nation’s strategic shipbuilder for Tier 2 surface combatants at the Henderson Defence Precinct in Western Australia.

The Western Australian government recently announced a major investment in the state’s naval; shipbuilding capability and the establishment of the Henderson Defence Precinct.

WA invests in naval defence manufacturing

The SSA creates the framework for Austal to design, construct, integrate and deliver the naval programs, beginning with 26 Landing Craft projects for the Australian Army.

Austal CEO Paddy Gregg said the signing of the agreement is a defining moment for the company.

“The partnership not only reinforces Australia’s sovereign naval shipbuilding capability but also strengthens the Henderson precinct’s role in delivering continuous naval shipbuilding and strategic readiness,” Gregg said.

The SSA will run over 15 years, supporting continuous naval shipbuilding in WA, creating a local supply chain, and aligns with broader defence programs including Collins Class submarine sustainment and fleet support.