Heads of Agreement and Pilot Program for Strategic Shipbuilding Agreement with Commonwealth for Shipbuilding in Western Australia
Austal Limited (“Austal”) is pleased to announce that it has signed a Heads of Agreement (“HoA”) with the Commonwealth of Australia (“CoA” or “the Commonwealth”) to establish a Strategic Shipbuilding Agreement (“SSA”) between Austal and the Commonwealth. If ultimately signed, a Strategic Shipbuilding Agreement would see Austal selected as the Commonwealth’s strategic shipbuilder at Henderson, Western Australia.
As part of a pilot program under the SSA HoA, it is proposed that Austal will construct and deliver the Birdon-designed Landing Craft (Medium) capability to the Australian Army under the Commonwealth’s LAND 8710 project.
In addition, the Commonwealth has also ordered two additional Evolved Cape Class Patrol Boats at an acquisition cost of $157 million, an important order for Defence to optimise its surface fleet and for Austal to ensure workforce stability.
LAND 8710 Landing Craft - Medium
As part of a pilot project to be undertaken under the SSA, the Commonwealth has nominated Austal to work to construct and deliver the Birdon-designed LAND8710 Landing Craft - Medium capability for the Australian Army.
The Commonwealth is now working with Birdon to undertake further design maturation to prepare the Landing Craft - Medium design for the construction of these vessels at Henderson.
Cape class Patrol Boat (photo : Austal)
Subject to the program’s performance and conclusion of the SSA, Austal understands the Government also intends to build the Landing Craft – Heavy capability through Austal under the framework of the SSA.
Austal will continue to work with Defence to understand key matters regarding number of vessels, pricing and delivery timeframes for the LAND 8710 project (including the Landing Craft (Heavy) elements) and will provide further details to shareholders as commercial negotiations progress.
Additional Cape Class Vessels
The two additional Cape Class vessels for $157 million sought by the Government from Austal adds to the 18 vessels previously ordered by the CoA.
Based on the original 58 metre aluminium monohull design, the Evolved Cape-class Patrol Boats include several enhancements that further extend the capability of the vessel and the fleet. With a crew capacity of total 32 and enhanced quality-of-life provisions the new vessels have connectivity to the outside world, regardless of the operating environment.
Following the Commonwealth’s announcement of the procurement today, the award of the contract is subject to the finalisation of contractual and commercial details.
“The additional two vessels are a timely boost for the company’s Australian workforce and should provide an important element of a continuous shipbuilding program in Henderson. This will assist Austal in retaining its highly specialised workforce employment stability while adding to the capability of Australia’s surface fleet,” Mr Gregg said.
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