On December 18, Australian defense shipbuilder Austal announced on its official website that under the Strategic Shipbuilding Agreement signed with the Australian federal government, its subsidiary Austal Defence Shipbuilding Australia has secured a contract worth A$1.029 billion (approximately US$680 million) to design and build 18 medium landing craft (LCM).
18 vessels worth US$680 million: Austal’s new shipyard secures first order
The LCM Design and Build Tasking Statement Contract appoints Austal subsidiary, Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia), to complete the detailed design and build 18 Landing Craft Medium (LCM) vessels at Austal’s Henderson, Western Australia, shipyard. Construction of the first LCM is scheduled to commence in 2026 with the 18th and final vessel scheduled for delivery in 2032.
The LCM, being built for the Australian Army, will be manufactured in steel and capable of projecting loads up to 80 tonnes.
Austal Limited CEO Paddy Gregg said the first design and build contract awarded under the SSA was a significant milestone for Austal Defence Australia, as the Commonwealth’s Strategic Shipbuilder in Western Australia.
Austal Ships secures additional orders worth approximately US$89 million
In addition to the major defense contract awarded to Austal Defence Australia, another shipbuilding subsidiary of Austal has also secured a defense shipbuilding contract.
On December 19, Austal announced that its subsidiary Austal Ships had secured an additional order for two upgraded Cape-class patrol vessels, valued at over A$135 million (approximately US$89 million).
This latest award, valued at over A$135 million brings the total number of Evolved Cape-class Patrol Boats contracted to Austal to 14 vessels, reinforcing the long-standing partnership between Austal, the Australian Border Force and the Royal Australian Navy in delivering critical maritime capability for Australia’s national security.
Austal Limited Chief Executive Officer, Paddy Gregg, said the additional vessels continue to strengthen Maritime Border Command’s readiness and operational reach.
Austal delivered eight original Cape-class Patrol Boats to the Australian Border Force between 2012 and 2015; these were followed by additional orders and deliveries to the Royal Australian Navy (2 vessels) in 2017 and Trinidad and Tobago Coast Guard (2 vessels) in 2021.
Since 2020, the Commonwealth of Australia has ordered 12 Evolved Cape-class Patrol Boats for the Royal Australian Navy, and Australian Border Force. The addition of these thirteenth and fourteenth Evolved Capes reflects continued confidence in the platform’s performance, Austal’s proven reliability and the strength of Australia’s sovereign shipbuilding capability.
The Evolved Cape-class Patrol Boat design features expanded accommodations for up to 32 personnel, enhanced quality-of-life systems and advanced sustainment technologies to maximise operational availability. The vessels support a wide range of constabulary and naval missions and are a key element of Australia’s border security architecture.
Construction of the two new patrol boats will take place at Austal’s Henderson shipyard in Western Australia, supported by a proven national supply chain and integrated project teams from the Department of Defence and the Australian Border Force.
Austal continues to provide comprehensive in-service support for both Cape-class and Evolved Cape-class fleets through service facilities in Henderson (WA), Cairns (QLD) and Darwin (NT).
Austal Australia also continues to deliver the Guardian-class Patrol Boat program, with 22 of 24 vessels handed over under the Pacific Patrol Boat Replacement Project (SEA3036-1).
Authorities approve change of ownership for largest shareholder of Defense Shipbuilding Group
Recently, Australian authorities have approved Hanwha Group’s increase in its stake in Austal from 9.9% to 19.9%, following the recommendation of the Foreign Investment Review Board (FIRB).
If the share increase is successful, Hanwha Group’s stake will surpass that of Austal’s current largest shareholder, Tata Rang Ventures (holding a 19.28% stake as of June 30, 2025), making Hanwha the largest shareholder of the defense shipbuilding group.
Austal had previously rejected Hanwha Group’s non-binding offers multiple times. The transaction had been ongoing for two years, and the acquisition plan was once terminated. However, Hanwha Group did not abandon its acquisition plans. Six months after announcing the termination of negotiations, Hanwha Group made another move to acquire Austal by changing the acquiring party and restructuring the equity.
In March 2025, Hanwha Systems and Hanwha Aerospace, subsidiaries of Hanwha Group, acquired a 9.9% stake in Austal through open market transactions. Given Austal’s unique shipbuilding status (designated as a strategic shipbuilder by the Australian government and directly involved in constructing U.S. naval vessels), Hanwha Group submitted approval applications to both the Australian and U.S. governments starting in March 2025. In June 2025, it first secured regulatory approval from the U.S. Committee on Foreign Investment (CFIUS), which authorized Hanwha Group to increase its stake in Austal from 9.9% to 19.9%.
Hanwha Group explained that it has no interest in local Australian operations, with its ultimate goal being the U.S. market.
Data indicates that Austal is Australia’s defense shipbuilding group, primarily responsible for constructing small surface vessels and logistics support vessels for the U.S. Navy. It holds a market share of 40% to 60%, ranking first in the industry. As of June 30, 2025, Austal’s order backlog stood at approximately A$14.2 billion (equivalent to US$9.379 billion), spanning three core segments: U.S. defense, Australian defense, and commercial shipbuilding. A total of 49 new vessels are either under construction or scheduled for construction, with delivery cycles extending over the next 5 to 10 years.