Austal lands massive $4 billion deal to build eight LCH vessels for Australia

February 20, 2026, by Fatima Bahtić

Austal Defence Australia has been awarded a $4 billion contract for the construction of eight landing craft heavy (LCH) vessels, under the Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia.

Construction of the LCH vessels, based on the Damen LST100 design, will be undertaken using Austal facilities and the Common User Facility at Henderson in Western Australia.

The units will provide the Australian Defence Force with a critical maritime capability, supporting amphibious operations, logistics, humanitarian assistance and disaster relief across Australia’s region of interest.

Each LCH vessel will be approximately 100 metres long and 16 metres wide, with a displacement of around 3,900 to 4,000 tonnes. The ships are designed to carry more than 200 embarked personnel and can transport heavy armored capability, including up to six M1A2SEP3 Abrams tanks or nine Redback infantry fighting vehicles.

Construction is scheduled to commence in 2026, with the eighth and final vessel scheduled for delivery to the Commonwealth in 2038.

“This contract represents another significant investment in Australia’s sovereign shipbuilding capability – and Austal Defence Australia is ready to deliver these highly capable vessels to support the ADF’s operational requirements,” Austal Limited Chief Executive Officer, Paddy Gregg, said.

Austal Defence Australia Executive General Manager – Strategic Shipbuilding, Gavin Stewart said Landing Craft Heavy was the second major construction contract awarded under the Strategic Shipbuilding Agreement, following the award of the $1.029 billion Landing Craft Medium design and build contract in December 2025.

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Vessels

“With Landing Craft Medium and Landing Craft Heavy contracts now underway, there are outstanding opportunities for people and businesses to engage with Austal Defence Australia, and our industry and supply chain partners, to help deliver new capability for Australia. Austal Defence Australia is looking forward to expanding and developing the industrial capabilities at Henderson and beyond, into a reliable shipbuilding enterprise to support the Commonwealth’s objectives of sovereign shipbuilding capability.”

“These Programs under the Strategic Shipbuilding Agreement represent decades of continuous naval shipbuilding work, to be delivered here in Western Australia,” Stewart added.

Austal also notes that, in addition, Austal USA is presently constructing up to 12 smaller landing craft utility vessels for the US Navy at its Mobile, Alabama, US shipyard.