Defense Contracts Ramp Up

Austal(ASB) has been announced as the Strategic Shipbuilding Partner SSP) for the Commonwealth of Australia.

Under the Strategic Shipbuilding Agreement (SSA), Austal will be the prime contractor for the build and delivery of 18 Landing Craft (known as LCM’s for Landing Craft Medium) for the Australian Army over an 8-year term for a price between $1-1.3bn AUD with the final vessel to be delivered in 2032.

Further, this SSP also covers the delivery of 8 LST100’s (Landing Craft Heavy) and contractual details are expected to be finalised in the 2025 calendar year.

It is clear that ASB has the ability to utilize ‘key contractors’ which already includes Bisalloy (BIS) and Civmec (CVL) – direct comments as below

“Austal Defence Australia will deliver the Commonwealth’s key Tier 2 surface shipbuilding programs in Western Australia undershipbuilding contracts, using a variety of key contractors and suppliers including, but not limited to, Austal’s other shipbuilding entities.”

“Other Strategic Objectives include the provision of timely and efficient capability acquisition to ensure Defence readiness; to deliver a sovereign and continuous naval design and shipbuilding capability that consistently supports the delivery of schedule and budget targets; andto develop the involvement of the local Supply Chain in design, build and through-life support.”

AND, to demonstrate the commitment to the Henderson area in WA (where CVL are directly located)

“The SSA will also seek to develop a robust supply chain in the Henderson shipbuilding precinct to deliver the Commonwealth’s continuous naval shipbuilding capability in Western Australia and meet strategic objectives for the development of Australian sovereign shipbuilding capability”