Austal to bid for $800m Australian defence project

Local shipbuilder Austal is submitting a proposal to design and build an amphibious vehicle for the Australian Army.

Phase one of the project includes the development of amphibious (land and water) vehicles and independent landing crafts to replace the army’s current vessels.

The federal government has committed to invest $800 million towards the project, as announced in February.

Austal said the AVs and landing crafts would transport land forces with enhanced speed and protection, with the new vehicles expected to be introduced from 2026.

Chief executive Paddy Gregg said Austal was keen to enhance its partnership with the Australian Army.

“Austal is Australia’s proven defence prime contractor that has designed, constructed and sustained multiple naval shipbuilding programs for Australia, and export markets around the world, for more than 20 years,” Mr Gregg said at a recent Land Forces defence exhibition in Brisbane.

“Drawing upon this local strength in defence capability, including Australia’s largest team of naval architects, Austal is confident of offering an exceptional new littoral manoeuvre capability for the Australian Army that may be relied upon throughout its working life.”

Mr Gregg said Austal had a proven track record, having worked with the Australian Border Force, the Royal Australian Navy and the Department of Defence since 1998.

Henderson-based Austal has delivered 42 ships in total to the Australian government.

The business directly employs almost 1,100 people in Australia.

It was the first ASX-listed shipbuilder and remains the nation’s largest defence exporter, having recently delivered two 58-metre Cape-class Patrol Boats to the Trinidad and Tobago Coast Guard.

Shares in Austal closed down 1.8 per cent on Monday to trade at $2.22.