Strategic shipbuilding agreement secures continuous pipeline of shipbuilding work for WA
5 AUGUST 2025
The Albanese Government is securing a continuous pipeline of shipbuilding work in Western Australian and creating thousands of jobs through the execution of the Strategic Shipbuilding Agreement with Australia’s newly established Strategic Shipbuilder, Austal Defence Shipbuilding Australia Pty Ltd.
For too long, the Australian shipbuilding industry has lacked the consistent work needed to develop a competitive and reliable shipbuilding capability. This has had a flow-on effect of hindering the development of Australian-made Defence capabilities and resilience in our shipbuilding industry.
The Strategic Shipbuilding Agreement will provide the framework for a steady pipeline of projects to be delivered by Austal, granted it continues to perform and meet a range of conditions. This 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.
As the Strategic Shipbuilder, Austal will work closely with local industry and supply chains to develop the skills and resources required for this task.
The Strategic Shipbuilding Agreement builds on the already‑established relationship between Defence and Austal for construction of the Guardian class and Evolved Cape class Patrol Boats, and will see the delivery of dozens of vessels, with pilot programs to include:
18 Landing Craft Medium for the Australian Army; and subject to further approvals and negotiations, the build of eight Landing Craft Heavy.
Together, the Landing Craft Medium and Landing Craft Heavy projects are expected to create 1,100 direct jobs and more than 2,000 indirect jobs.
The Strategic Shipbuilding Agreement will also play a vital role in the establishment of a Commonwealth Defence Precinct at Henderson – underpinning tens of billions of dollars of investment in Defence capabilities in the West over the next two decades and supporting in the order of 10,000 high‑skilled jobs.
As one of two major shipbuilding hubs in Australia, Henderson is an asset of national importance and pivotal to the build and sustainment of vessels for the Australian Defence Force.
The Albanese Government is committed to working with the Cook Labor Government to develop the industry, infrastructure and workforce needed to secure continuous naval shipbuilding in Western Australia.
Source Defence Press Release