Australia’s sovereign shipbuilding sector received a significant boost on Friday as Austal Limited was awarded a second major defence contract to construct eight Landing Craft Heavy (LCH) vessels for the Australian Defence Force.

The contract, valued at around four billion Australian dollars, was announced by defence industry officials and forms part of the Commonwealth’s Strategic Shipbuilding Agreement (SSA), which aims to underpin continuous naval production and sovereign capability building in Western Australia.

Construction is slated to begin in 2026 at Austal’s Henderson shipyard, with the final craft scheduled for delivery by 2038, reinforcing a long-term industrial pipeline for the Australian defence sector.

This new award follows a previous design and build contract for 18 Landing Craft Medium vessels awarded to Austal in December 2025, marking the LCH contract as the second major build under the SSA framework.

The eight LCH vessels will each measure approximately one hundred metres in length and are based on the Damen LST100 design.

They will significantly enhance the Australian Army’s amphibious and logistical lift capacity, capable of transporting heavy equipment and personnel across littoral and expeditionary environments.

Each craft is designed to embark more than two hundred troops alongside armour and vehicles such as main battle tanks, infantry fighting vehicles and other combat systems, expanding the Army’s ability to project and sustain forces.

Austal’s chief executive emphasised that the award reinforces the company’s role as a sovereign shipbuilder and key partner to Australia’s defence enterprise.

The contract is expected to generate thousands of skilled jobs in Western Australia and stimulate long-term engagement across the national defence supply chain, including opportunities for local suppliers and industry partners.

Austal’s expanding order book reflects the growing scale and ambition of Australia’s continuous shipbuilding agenda.

The SSA, under which the LCH build is being delivered, was established to ensure a persistent and sovereign naval shipbuilding capability for the Commonwealth.

It designates Austal Defence Australia as the primary builder for key surface vessels including landing craft medium and heavy variants.

The agreement supports broader strategic objectives by strengthening the domestic industrial base, fostering workforce development and enhancing the nation’s amphibious and logistical sea-lift capabilities.

Saturday’s announcement underscores Australia’s commitment to enhancing its defence infrastructure and sustaining a robust, sovereign maritime manufacturing sector for decades to come.