In a major boost to Australia’s naval shipbuilding industry, Austal Limited and Civmec Limited have signed an MOU to form a joint venture, aiming to submit a proposal for the Commonwealth’s LAND8710 Phase 2, Landing Craft Heavy project.
In a LinkedIn post, Austal revealed that LAND8710 Phase 2 (LC-H) is a critical project designed to enhance the transport and littoral manoeuvre capabilities of the Australian Army, increasing its operational reach across the Indo-Pacific region.
The joint venture between Austal and Civmec will focus on creating a robust structure, efficient delivery process, and a detailed scope for the LC-H project, in preparation for tender submission to the Commonwealth.
The JV plans to undertake shipbuilding tasks for the LC-H project at Civmec’s state-of-the-art assembly hall located in Henderson, Western Australia.
This collaboration is set to leverage the strengths of both companies, ensuring a seamless and efficient project execution.
Civmec’s Executive Chairman, Jim Fitzgerald, emphasised the strategic importance of the joint venture, stating, “The proposed Joint Venture between Austal and Civmec will be an important step to ensure the continuation of naval shipbuilding at Henderson. With tenders, detailed scopes, and commercial arrangements now able to be finalised at pace, we are well-prepared for the task ahead.”
Fitzgerald highlighted the unique capabilities of Civmec, noting, “By combining Civmec’s Henderson shipbuilding facilities, which include the largest heavy engineering facility of its kind in Australia, our systems, steel manufacturing expertise, and 4,000-strong labor force, together with Austal’s naval shipbuilding experience and long track record of delivery, the JV would be very well placed to deliver efficient Continuous Naval Shipbuilding in Western Australia to Defence.”
He also mentioned the need for careful planning, “There are many details to work through, including expansion of Civmec’s footprint in Henderson to ensure there is no impact to Civmec’s ongoing work for the resources, energy, and infrastructure sectors.”
Austal’s Chief Executive Officer, Paddy Gregg, expressed enthusiasm about the partnership’s potential.
He stated, “We are excited by what a partnership could mean for continuous sovereign shipbuilding, particularly in Western Australia. A partnership and commercial arrangement with Civmec should complement our Strategic Shipbuilding Agreement with the Commonwealth.”
Gregg pointed out the advantages of the JV for the Commonwealth, “It would provide the Commonwealth with immediate access to a larger pool of skilled shipbuilding workers that can transition across multiple projects via a ‘consolidated Henderson’ model.”
He added, “It will allow the Commonwealth to continue to leverage Austal’s naval shipbuilding experience and track record of delivery for the Commonwealth, including the upcoming Landing Craft-Heavy program.”
