Execution of a Strategic Shipbuilding Agreement (SSA) between Defence and a newly established strategic shipbuilder, Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia), marks a significant milestone in the Henderson Consolidation Program.

As the strategic shipbuilder for Henderson, Western Australia, Austal Defence Australia will bring together the local industrial base and supply chain to develop the sovereign skills and resources required to deliver key shipbuilding projects.

“Having a strategic shipbuilder will accelerate capability delivery and bolster Australia’s sovereign shipbuilding industry,”  Deputy Secretary Naval Shipbuilding and Sustainment Group, David Hanley, said.

The execution of the SSA on August 28 represents a significant milestone in the delivery of continuous naval shipbuilding in WA, and of the strategic priorities under the 2024 National Defence Strategy.

“The SSA will facilitate a continuous pipeline of shipbuilding work that offers local industry improved visibility of demand, and opportunities for upskilling through a more coordinated approach to shipbuilding.”

The SSA will also incentivise investment in the industrial capability of the Henderson Defence Precinct, reduce time delays by boosting continuous shipbuilding capability, and enable long-term planning and confidence for local industry.

'Having a strategic shipbuilder will accelerate capability delivery and bolster Australia’s sovereign shipbuilding industry.'

The SSA is a collaborative contracting agreement designed to streamline procurement processes for contracts awarded to the strategic shipbuilder by establishing an umbrella of pre-agreed terms and conditions, while complying with the Commonwealth procurement rules. 

Through the SSA pilot program, the strategic shipbuilder will initially focus on the delivery of new maritime vessels to support Army’s littoral manoeuvre capabilities, the Landing Craft Medium, and, subject to Government approval and commercial negotiations, the Landing Craft Heavy. 

This approach will provide industry at Henderson, and the broader Australian industrial base that supports shipbuilding, with greater long-term certainty to invest into shipbuilding infrastructure, workforce and supply chains.

For more information, please visit the Defence website.