Defence awards Austal $4B contract for eight LCHs

Defence has awarded Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia) a $4 billion contract to build eight Landing Craft Heavy (LCH) under the Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia that was signed last year.

Construction of the 100m LCHs, based on the Damen LST100 design, will be undertaken using Austal facilities and the Common User Facility (CUF) located further to the south at Henderson in Western Australia. Construction is scheduled to commence in 2026, with the eighth and final vessel scheduled for delivery to the Commonwealth in 2038.

The LCHs have a beam of 16m and displace approximately 4,000 tonnes. They will be able to carry more than 200 troops and either six M1A2 Abram tanks or nine Redback IFVs

Austal Limited Chief Executive Officer, Paddy Gregg, said this contract generates a record order book for Austal, provides a long-term demand signal for its supply chain, and provides the incentive to invest in uplifting our capability.

“This contract represents another significant investment in Australia’s sovereign shipbuilding capability,” Mr Gregg said.

“While Austal’s US business has traditionally accounted for a large share of our defence order book in recent years,” he added, “this contract reflects the growing strength and success of Austal’s Australian operations — and Australian industry — within the national shipbuilding and sustainment enterprise. This LCH construction contract balances out the split and provides greater geographic diversity of earnings. It also provides earnings and employment stability for the next 12 years.”

Austal Defence Australia Executive General Manager – Strategic Shipbuilding, Gavin Stewart said the LCH was the second major construction contract awarded under the Strategic Shipbuilding Agreement, following the award of the $1.029 billion Landing Craft Medium design and build contract in December 2025.

The LCHs will provide the ADF with a critical maritime capability, supporting amphibious operations, logistics, humanitarian assistance and disaster relief across Australia’s region of interest.

Austal also points out that Austal USA is presently constructing up to 12 smaller Landing Craft Utility vessels for the US Navy at its Mobile, Alabama, shipyard.