Austal advances after securing a $4b contract with Defence
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More news: Shares in Austal climbed in afternoon trade after the company secured a $4 billion contract from the federal Department of Defence for the construction of eight Landing Craft Heavy vessels, scheduled to commence in 2026.
Shares were 5.53% higher, to $6.30, at 2:38pm AEDT.
Austal secures $4b contract to build defence landing craft
The news: Shipbuilder and defence prime contractor Austal has secured a $4 billion contract from the Commonwealth Department of Defence for the construction of eight Landing Craft Heavy (LCH) vessels.
The contract is being delivered under the Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia and is scheduled to commence in 2026, with the final vessel due for delivery in 2038.
The context: Under the agreement, Austal will construct the 100-metre LCH, based on the Damen LST100 design, at its Henderson facility in Western Australia.
Austal said the LCH vessels will provide the Australian Defence Force with advanced maritime capabilities, supporting amphibious operations, logistics and humanitarian assistance across Australia.
What they said: “Constructing the LCH vessels at Henderson will create and develop thousands of new, skilled jobs in Western Australia and provide further opportunities for the local defence industry supply chains,” Austal CEO Paddy Greg said.
The source: ASX
