Australia will lend $245 million to shipbuilder Austal to construct and equip a major manufacturing warehouse at the Henderson Defence Precinct near Perth.
The facilities will form part of the Australian Marine Complete, one of the country’s two naval shipyards and a significant centre for its defence sector and economy.
Industry Minister Tim Ayres said the investment would help secure industrial capability as the Government sought to strengthen Australia’s position during a global shipbuilding boom.
The naval shipbuilding market is expected to grow by 25 per cent worldwide over the next seven years.
The commitment is the largest so far made through the National Reconstruction Fund, a $15 billion scheme providing zero-interest loans for Australian manufacturing. It follows a further $327 million from the fund for defence-related projects.
The fund was established in 2022 after an Albanese Government election commitment to support domestically made products. It has also faced criticism over claims that taxpayer money is being directed towards unproductive projects.
Defence Industry Minister Pat Conroy said the project would create hundreds of jobs, in addition to the 1,200 positions Austal already has in Australia.
“(It) demonstrates that the Albanese Labor government is working closely with our defence industry as trusted partners to deliver significant defence capabilities,” he said.
