Austal secures major funding for Australian naval shipbuilding expansion
Australian shipbuilder Austal Limited is set to receive A$245 million in debt financing from the National Reconstruction Fund Corporation (NRFC) to develop an advanced naval manufacturing facility in Western Australia.
The funding will be provided to Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia), a subsidiary of Austal Limited, to support the construction and fit-out of facilities at the Australian Marine Complex (AMC).
The investment will enable local production of Landing Craft Heavy (LCH) vessels for the Australian Army, strengthening the country’s domestic defence shipbuilding capabilities.
New facilities to support naval construction
The planned manufacturing facility will incorporate modular production capabilities designed to support the construction of eight Landing Craft Heavy vessels.
Under the Strategic Shipbuilding Agreement signed with the Commonwealth of Australia in 2025, Austal Defence Australia has been contracted to manufacture the eight vessels by 2038.
The vessels will be capable of transporting more than 500 tonnes of personnel, vehicles and equipment by sea, including military systems and other operational assets.
They are intended to strengthen the Australian Defence Force’s ability to operate in coastal environments while also supporting humanitarian assistance and disaster relief operations.
The NRFC financing will support the construction and equipping of the manufacturing facilities required to deliver the programme.
Investment expected to create new jobs
Austal currently employs approximately 1,200 people in Australia. The investment is expected to support the creation of an additional 780 jobs in Western Australia across skilled trades, engineering and advanced manufacturing.
NRFC Chief Executive Officer David Gall said the investment would strengthen Australia’s existing naval shipbuilding capacity and support the development of domestic industrial capabilities.
According to Gall, the facilities and manufacturing expertise developed through the programme could also support future naval construction projects.
Austal Chief Executive Officer Paddy Gregg said the funding would help establish the infrastructure needed to deliver the Landing Craft Heavy programme while generating long-term benefits for Australian shipbuilding and employment.
Strengthening domestic shipbuilding capabilities
The investment forms part of Australia’s broader efforts to expand domestic defence manufacturing and reduce reliance on overseas shipyards.
Austal Defence Australia was designated the country’s strategic shipbuilder in Western Australia under the 2025 Strategic Shipbuilding Agreement.
The planned facility is expected to strengthen local naval assembly and quality assurance capabilities, providing manufacturing infrastructure that could be used across future defence programmes.
The NRFC financing remains subject to the completion of financing documentation and the satisfaction of customary transaction conditions.
The announcement therefore represents a planned financing commitment rather than confirmation that the funds have already been disbursed or that construction of the new facility has been completed.
