National Reconstruction Fund Invests $245 million in Australian Shipbuilder Austal Limited to Help Strengthen Country’s Military Shipbuilding Capabilities

24 Oktober 2026

The 100 m LCH that will be constructed by Austal, based on the Damen LST100 design (image: Austal)

The National Reconstruction Fund Corporation (NRFC) is providing $245 million of debt to Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia (ADA)) to build an advanced manufacturing facility that will enable local production of Landing Craft Heavy (LCH) for the Australian Army at Western Australia’s Australian Marine Complex (AMC).

ADA is a subsidiary of Austal Limited (ASX: ASB), an Australia-based shipbuilder and Defence prime contractor that specialises in the design, construction and support of defence and commercial vessels. The Commonwealth of Australia (CoA) and ADA executed the Strategic Shipbuilding Agreement (SSA) in 2025, making ADA Defence’s Strategic Shipbuilder in Western Australia. 

Under the Agreement ADA has been contracted to manufacture eight Landing Craft Heavy (LCH) vessels by 2038. The LCH will be capable of transporting more than 500 tonnes of embarked personnel, vehicles and equipment by sea, including long-range precision strike weapons and other units. This will greatly enhance the Australian Defence Force’s littoral capability, and support humanitarian and disaster relief.

NRFC funding will be used to construct and fit out ADA’s AMC facilities with modular manufacturing capabilities to ensure delivery of the LCH project. 

Austal already employs around 1,200 people in Australia and NRFC investment in the LCH project is expected to create an additional 780 Western Australia based roles in skilled trades, engineering and advanced manufacturing. 

NRFC’s investment is subject to completion of finance documentation and satisfaction of conditions customary for a transaction of this nature.

(NRF)

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