Austal has secured $245 million in debt financing from the National Reconstruction Fund Corporation (NRFC) to develop the infrastructure required to deliver landing craft heavy (LCH) vessels.
Austal was awarded a $4 billion contract in February this year to build eight landing craft heavy (LCH) vessels under the Strategic Shipbuilding Agreement (SSA) with the Commonwealth of Australia.
Modules for the LCH vessels will be built at Austal’s existing facilities and new facilities. Assembly and launch of the 100-meter vessels will take place at the Australian Marine Complex (AMC) in Henderson, Western Australia.
Subject to customary conditions precedent, the NRFC funding will be used to construct and fit out additional dedicated shipbuilding facilities for the LCH program at the AMC, according to Austal.
Infrastructure funding was contemplated under the Strategic Shipbuilding Agreement and associated LCH Tasking Statement signed by the Commonwealth of Australia and Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia). Under the agreement, the Commonwealth will cover all funding costs associated with the NRFC loan facility, minimizing Austal’s working capital requirements.
Austal Limited Chief Executive Officer Paddy Gregg said the funding demonstrated the Strategic Shipbuilding Agreement in practice, with all parties working together to support the shipbuilding program in Western Australia.
LCH vessels, based on the Damen LST100 design, will provide the Australian Defence Force with a critical maritime capability, supporting amphibious operations, logistics, humanitarian assistance and disaster relief across Australia’s region of interest.
Each LCH vessel will be approximately 100 metres long and 16 metres wide, with a displacement of around 3,900 to 4,000 tonnes. The ships are designed to carry more than 200 embarked personnel and can transport heavy armored capability, including up to six M1A2SEP3 Abrams tanks or nine Redback infantry fighting vehicles.
Construction is scheduled to commence this year, with the eighth and final vessel scheduled for delivery to Australia in 2038.