By Peter Roberts - AuManufacturing
The federal government has moved to secure the future of Austal’s Perth shipbuilding operation and its Henderson yard in Western Australia.
Defence has entered into a new strategic partnership with Austal which will see 18 of the Army’s new Landing Craft Medium built at Henderson.
Austal will also deliver two new Evolved Cape-Class Patrol Boats for the Royal Australian Navy at an acquisition cost of $157.1 million.
Port Macquarie maritime engineer Birdon Group has been tapped to design the Landing Craft Medium which will be built by Austal.
Birdon has more than $700 million worth of security-related contracts in the United States, with this new deal a breakthrough into defence in Australia for the small company.
The contracts with the promise of more are a response to the Defence Strategic Review which found there was not enough work to sustain the number of shipbuilders located at Henderson, and recommended industry consolidation was a priority.
Austal’s shares are in a trading halt pending the announcement, with shares last trading at $1.86, valuing the company at $676 million.
There has also been speculation that Austal could be a takeover target, given the company’s low valuation and the attractiveness of its US shipbuilding operation which has extensive contracts with the US Navy...