Civmec facilities in Henderson W.A.

Press Release reported by DEFENCE CONNECT;

West Australian-based shipbuilders Austal and Civmec have formally executed a memorandum of understanding (MOU) to establish a joint venture and submit a proposal to the Commonwealth of Australia to support the LAND 8710 Phase 2 Landing Craft Heavy (LC-H) project. The LAND 8710 Phase 2 Landing Craft Heavy (LC-H) project is designed to build upon the LAND 8710 Phase 1 Landing Craft Medium (LC-M) project to provide the Australian Army with enhanced transport and littoral manoeuvre capability across the Indo-Pacific. The Landing Craft Medium will provide independent shore-to-shore and ship-to-shore capability to enable movement and sustainment of the amphibious Joint Force over extended ranges in the restricted littoral and riverine environments.

Under the MOU, Austal and Civmec will develop the structure, delivery process, and detailed scope of the joint venture (JV) in preparation to submit tenders to the Commonwealth for LAND 8710 Phase 2 (LC-H). Civmec’s executive chairman, Jim Fitzgerald, said, “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 arrangement now able to be finalised at pace.” The companies intend for the joint venture to contract directly to the Commonwealth to undertake shipbuilding tasks for the LC-H project within the assembly hall at Civmec’s Henderson facility.

“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 labour 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,” Fitzgerald said. Austal’s chief executive officer, Paddy Gregg, expanded on the comments made by Fitzgerald, saying, “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.

“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. 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.”