Australia pledges $245 million to Austal for new defence manufacturing hub
The Australian government will provide Austal with $245 million to build a large ship-building warehouse at the Henderson Defence Precinct near Perth.
Australia's National Reconstruction Fund will allocate $245 million to shipbuilder Austal for a major new manufacturing warehouse at the Australian Marine Complete facility in the Henderson Defence Precinct, Western Australia. The loan, the biggest single commitment from the fund, follows an earlier $327 million earmarked for various defence initiatives. Industry Minister Tim Ayres presented the funding as essential to maintaining industrial capability amid a global naval shipbuilding surge expected to grow 25 percent over the next seven years.
Defence Industry Minister Pat Conroy said the project will generate hundreds of additional jobs beyond Austal's current 1,200 Australian employees. The $15 billion fund, created in 2022 by the Albanese government to boost domestic production, has faced criticism for funding projects deemed unproductive, but officials argue this investment strengthens national security and the economy.
Why it matters
The funding strengthens Australia's defence manufacturing base and creates jobs in a key strategic sector.
In this story
