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The Australian Government has committed $245 million through the National Reconstruction Fund (NRF) to support the construction of an advanced manufacturing facility at the Henderson Defence Precinct in Perth, Western Australia, to build eight Landing Craft Heavy vessels for the Australian Defence Force (ADF) by 2038.
According to the Australian Government, Austal will use the funding to construct and fit out manufacturing facilities within the Australian Marine Complex, incorporating Defence-compliant, modular manufacturing capabilities.
The investment is expected to create 780 additional local jobs across skilled trades, engineering and advanced manufacturing. Austal currently employs around 1,200 people in Australia.
The government noted the funding brings the NRF’s total investment in defence and defence-related projects to more than $570 million, building on $327 million in existing investments, the government said.
Minister for Defence Industry and Minister for Pacific Affairs Pat Conroy said the investment would support Australia’s defence industrial base and create skilled employment.
“National security and industrial resilience are inseparable,” Conroy said. “We will keep delivering on our agenda to grow the sovereign defence industry, because it is no longer quicker and cheaper to buy off the shelf from overseas.”
Minister for Industry and Innovation and Minister for Science Tim Ayres said the investment would strengthen domestic advanced manufacturing and shipbuilding capabilities.
“Australia is stronger and more secure when we have the industrial capability to make more of what we need here at home,” Ayres said.
The government said the facility would support Australia’s naval shipbuilding capacity at Henderson, which is home to one of the country’s two principal naval shipyards. It also cited projected growth of 25 per cent in the global naval shipbuilding market over the next seven years as an opportunity for the industry.
Member for Fremantle Josh Wilson said the investment would support workforce development and local supply chains.
“This facility will build crucial seagoing craft, attract future projects with export opportunities, and have a positive ripple effect for small businesses in Cockburn, Fremantle and throughout the local supply chain,” Wilson said.
The investment is being made through the $15 billion National Reconstruction Fund, which the government established to support Australian industry and manufacturing capabilities.