Australia lends $245m to shipbuilder for Henderson warehouse

Summarised from 2 outlets · Updated 21 Oct, 07:32 · Archive

Australia is lending $245 million to shipbuilder Austal for a new manufacturing warehouse in Western Australia.

The Australian government will lend $245 million to Austal, the nation's largest shipbuilder, to construct and fit out manufacturing facilities at the Henderson Defence Precinct near Perth. The Henderson site is one of Australia's two naval shipyards and plays a crucial role for the defence sector and economy.

The loan is the largest commitment so far from the $15 billion National Reconstruction Fund, which provides zero-interest loans for Australian manufacturing and was established in 2022. It builds on another $327 million from the fund already allocated to various defence-related projects. The government has justified the investment as securing industrial capability at a time when the global naval shipbuilding market is expected to grow 25 per cent over the next seven years.

Defence Industry Minister Pat Conroy said the funding would create hundreds of jobs on top of the 1,200 Austal already employs in Australia, and that it demonstrated the government working as 'trusted partners' with defence industry to deliver capabilities.

How it is being reported

• Millions of dollars sunk into military ship warehouseThe federal government is lending hundreds of millions to Australia's largest shipbuilder to build a new warehouse.Perth Now · 21 Oct, 06:58
• Millions of dollars sunk into military ship warehouseThe federal government is lending hundreds of millions to Australia's largest shipbuilder to build a new warehouse.The West Australian · 21 Oct, 06:57

In this story: Austal · Henderson Defence Precinct · Western Australia · Tim Ayres · Pat Conroy · National Reconstruction Fund

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