Production starts on $5 billion landing craft projects
Austal (ASX: ASB) has commenced production on its $5 billion landing craft projects for the Australian Army, with metal cut on the first Landing Craft Heavy (LCH) and Landing Craft Medium (LCM). The milestone was announced on 11 November 2026.
The start moves the projects from design and planning into physical build for Austal Defence Shipbuilding Australia Pty Ltd, which operates as Australia’s Strategic Shipbuilder. It follows the successful completion of significant design, planning, supply chain mobilisation and workforce readiness activities.
The two contracts at a glance
The LCH contract consists of 8 vessels and the LCM contract consists of 18 vessels. The first metal cuts were performed by Western Australian partners, including Austal’s long-term industry partner Pacific Industrial Company.
The Landing Craft Heavy contract was first announced in February 2026 and runs through 2038, giving the shipbuilder more than a decade of contracted work and a record order book.
| Project | Vessels | Contract value | Metal cut by | Location |
|---|---|---|---|---|
| Landing Craft Heavy (LCH) | 8 | approx. $4 billion | HD Plasma | Bibra Lake, Western Australia |
| Landing Craft Medium (LCM) | 18 | $1.029 billion | Pacific Industrial Company | Naval Base, Western Australia |
CEO view on delivery
Paddy Gregg, Chief Executive Officer
“The start of production on the LCM and LCH projects represents a major step forward in the delivery of littoral capability to Australia’s defence force and reinforces Austal’s ability to deliver complex naval platforms through its world-class shipbuilding facilities in Western Australia.”
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Supply chain and sovereign capability
The metal cuts by HD Plasma and Pacific Industrial Company, according to the company, highlight the importance of Austal’s supply chain in the success of the two projects.
Gregg said the two projects will deliver enduring benefits, including:
- Australia’s sovereign defence industrial capability
- Skilled jobs
- Stronger supply chains
- Long-term certainty for Western Australia’s shipbuilding sector
Gregg also said the projects extend beyond vessel delivery. He described them as “a leap forward in continuous naval shipbuilding in WA, contributing to the long-term sustainability of our naval shipbuilding workforce and supply chain and reinforcing Western Australia’s position as a nationally significant defence manufacturing hub.”
Gavin Stewart, Executive General Manager, Austal Defence Shipbuilding Australia
“The first metal cuts by HD Plasma and Pacific Industrial Company are important milestones that turn years of planning, engineering and preparation into physical production…”
“The commencement of both projects is an incredibly significant achievement for Austal Defence Shipbuilding Australia and the Strategic Shipbuilding Agreement framework under which we operate.”
Why landing craft matter to the Austal story
The LCH and LCM are amphibious projects. Amphibious vessels operate between sea and shore, and the company describes the projects as delivering littoral capability, meaning capability in coastal waters, to Australia’s defence force.
The Strategic Shipbuilder label stems from November 2024, when the Australian Commonwealth Government appointed Austal as its Strategic Shipbuilder for the construction of key Defence vessels in Western Australia.
A proposed Austal USA sale, a non-binding offer of US$1.25-1.35 billion, would not alter the Australian Strategic Shipbuilder appointment that underpins these landing craft projects.
For investors tracking the contract book, the two contracts total about $5 billion (8 LCH plus 18 LCM), and production is now underway. Austal is Australia’s largest defence exporter and first ASX-listed shipbuilder, with more than 360 vessels contracted over almost 40 years.
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