Australia's NRFC plans AUD245 million funding for Austal landing craft facilities

A computer-generated visualisation of the 100 m LCH that will be constructed by Austal, based on the Damen LST100 design. (Austal)

Australia's National Reconstruction Fund Corporation (NRFC) has announced planned investment of AUD245 million (USD172 million) in Austal Defence Australia (ADA) to support the country's military shipbuilding capabilities.

NRFC, which invests in domestic manufacturing capabilities, announced on 21 October that it would provide the funding as debt financing to build a manufacturing facility that will enable local production of Landing Craft Heavy (LCH) vessels for the Australian Army at the Australian Marine Complex (AMC) in Henderson.

“NRFC funding will be used to construct and fit out ADA's AMC facilities with modular manufacturing capabilities to ensure delivery of the LCH project,” the investment agency said.

In February, Austal was awarded a AUD4 billion contract to build eight LCH vessels for the Australian Department of Defence (DoD), based on the Damen LST100 design. Construction is scheduled to begin in 2026, with the final craft due for delivery in 2038, Austal said at the time.

According to NRFC, the LCH will be able to transport more than 500 tonnes of personnel, vehicles, and equipment by sea, including long-range precision-strike weapons and other military assets.

NRFC CEO David Gall said the investment would strengthen naval shipbuilding capacity as geopolitical shifts increase the importance of such capabilities.

“NRFC investment in LCH manufacturing builds industrial depth that can be re-deployed across future naval programmes,” Gall said. “It will help to embed vital sovereign naval assembly and quality assurance capabilities onshore, reducing our reliance on offshore shipyards and providing our allies with a strategically important capability as they undertake the large-scale fleet replacement needed to ensure maritime security.”