Anthony Albanese forms ’strategic pilot’ to build Army craft and save shipbuilding industry

The Albanese government has created a “strategic” pilot program to save the nation’s shipbuilding industry and workforce. See what it will involve.

Defence will form a “strategic partnership” with shipbuilder Austal and the Henderson shipyard in WA to build Army’s new amphibious assault vessel.

Two commercial global marine firms have been forced into a consortium with the Federal Government in a unique pilot to save the nation’s beleaguered shipbuilding industry and workforce.

Defence Minister Richard Marles announced Defence will form a “strategic partnership” with shipbuilder Austal and the Henderson shipyard in WA to build Army’s new amphibious assault vessel.

The announcement of the $800 million Landing Craft Medium (LCM) program, to replace 1970s model craft still in operation, had been delayed for months in-part as the government looked to how and where they should be built.

Soldiers from 2nd Battalion, the Royal Australian Regiment, on-board an Australian Army LCM-8 Landing Craft depart HMAS Canberra for beach landing serials during Exercise Sea Explorer, Cowley Beach, Queensland. Picture: Supplied

The Defence Strategic Review, blueprint for the future of the ADF and industry released earlier this year, warned there was not enough work to sustain the number of shipbuilders located at Henderson and recommended industry consolidation as a priority.

Family-owned NSW headquartered global maritime engineering defence contractor Birdon Group has now been selected as the preferred designer for the craft but it will be built by Austal at Henderson. Both Austal and Birdon had originally tendered individually to build and design their own vessels but now have to work out how they will build the 18 vessels together at Henderson.

The concept image of Birdon's Australian Army pitched Littoral Manoeuvre Vessel – Medium (LMV-M) designed to plug a critical capability gap for long-range open water deployment of troops and combat vehicles. Picture: Supplied

Birdon had earlier this year taken a gamble on its design by beginning construction on a fully operational prototype of the 50m-long craft ahead of tenders being awarded.

CEO Jamie Bruce welcomed his firm’s selection as preferred designer.

“As an Australian-owned private firm with a global reach, we deeply value and advocate for the pivotal contributions of businesses within Australia’s manufacturing and supply landscape,” he said.

Mr Marles said Henderson, one of only two shipbuilding hubs in Australia, was “an asset of national importance” and pivotal to the build and sustainment of future ADF vessels.

“This significant reform will see Henderson become one of Australia’s biggest and most efficient naval shipbuilding complexes that has the capacity and capability to meet the evolving needs of our Defence Force,” he said.

Shipbuilders at Henderson secure their future in pilot program. Picture: Supplied

“By securing the future of continuous naval shipbuilding at Henderson, industry will have the certainty it needs to invest in the local workforce and contribute to the West Australian economy for decades to come.”

Defence Industry Minister Pat Conroy said Australian ship building industry had for too long suffered the boom-bust cycle of shipbuilding “undermining productivity and workforce retention”.

“This ends with this strategic partnership,” he said.

Subject to how the LCM project goes, the Government also intends to build the Landing Craft Heavy (LCH) capability through the same strategic partnership.