Australia signs US$2.8 billion ship deal with Austal but puts pressure on company to deliver
Eight 100m Landing Craft Heavy vessels based on the Damen LST 100 design will be constructed by Austal. (Image: Austal)
The A$4 billion Landing Craft Heavy contract for Austal follows on from a A$1 billion deal in December for Landing Craft Medium ships, but the Australian government has made it clear that a contract for Mogami frigates is reliant on the success of these two contracts.
Austal Defence Australia will build eight Landing Craft Heavy (LCH) vessels for the Australian Army under a A$4 billion (US$2.8 billion) contract announced on 20 February, but the government has made it clear that future contracts depend on delivery.
The LCH deal follows the award of the A$1 billion Landing Craft Medium (LCM) design and build contract placed in December 2025 with both deals growing out of the Strategic Shipbuilding Agreement (SSA).
Construction of the 100m LCHs, based on the Damen LST 100 design, will be undertaken using Austal facilities Henderson in Western Australia. Construction is
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