Civmec Q+A
23/10/2026
‘Q3. With Civmec Defence Industries being a core segment:
i) What is the outlook like after the OPV program completion by 2028/29?
Company Answer:
The SEA 1180 Arafura Class Offshore Patrol Vessel programme remains the central focus for Civmec Defence Industries (CDI). Since CDI assumed the role of prime contractor on 1 July 2025, HMAS Eyre has been delivered and commissioned, NUSHIP Pilbara has been launched as the first vessel built in Western Australia, and the remaining vessels are progressing through construction at Henderson. Shipbuilding activity for the OPV programme continues to progress well at Henderson, with all four remaining vessels under construction: NUSHIP Pilbara (OPV 3), NUSHIP Gippsland (OPV 4), NUSHIP Illawarra (OPV 5) and NUSHIP Carpentaria (OPV 6). The Group sees CDI’s role continuing well beyond the build phase. The Australian Government’s 2026 National Defence Strategy, released in April 2026, re-committed to all six Arafura Class vessels. It also added A$1.0 to A$1.5 billion of funding over ten years, primarily directed at sustainment. As builder and prime contractor, CDI holds the design knowledge, engineering systems, skilled workforce and Henderson infrastructure to support the class through its service life. Civmec has also put forward an Arafura Capability Enhancement concept to enhance the vessels’ capability. The National Defence Strategy also confirmed a A$25 billion funding envelope for the Henderson Defence Precinct. On 24 August 2026, the Western Australian and Commonwealth Governments jointly confirmed the zone allocation for the Precinct, where Civmec is headquartered. Under the confirmed plan, defence expansion activity will be located to the north of Civmecs Henderson facility, including shipbuilding and sustainment and nuclear-powered submarine sustainment. The area immediately in front of the facility has been allocated to non-defence industry. This outcome allows Civmec to continue operating across all of its sectors from Henderson with minimal interference to its operations. It also leavethe Group well positioned to pursue opportunities in the build and development programmes associated with the Precinct. Civmec looks forward to further detail on the scope and timing of the planned investment, and continues to engage with the Commonwealth and the State on additional defence contracts and naval programmes.
ii) What is the company strategy for CDI in the long term?
Company Answer:
The Board’s long-term objective is for CDI to be an enduring Australian sovereign shipbuilder and prime defence contractor, not a single-programme business. The acquisition of Luerssen Australia brought a skilled naval shipbuilding workforce and established engineering and training systems. It also gave Civmec full ownership of the operations, assets and licences required to contract directly with the Commonwealth.
CDI’s strategy focuses on three areas:
-through-life support and capability enhancement of the Arafura Class including any international opportunities;
-pursuing future naval shipbuilding and sustainment programmes at Henderson;
-applying the Group’s broader heavy engineering, fabrication and construction capability to defence infrastructure.
Defence complements Civmec’s resources, energy and infrastructure businesses. It provides a long-duration, structurally growing revenue stream that supports the Group’s diversification strategy.
Q4. With Austal being now the strategic shipbuilder for the LCM, LCH contracts, what are the odds and options now of CDI being able to participate in the Mogami frigates local orders build which is expecting to start in 2030 in WA?
Company Answer:
Civmec acknowledges the Commonwealth’s Strategic Shipbuilding Agreement with Austal and its role as Strategic Shipbuilder at Henderson.
The Group does not comment on the likelihood of securing any particular contract. However, it believes Civmec and CDI are well placed to contribute to the upgraded Mogami class frigate programme and to the broader continuous naval shipbuilding enterprise at Henderson.
Globally, successful naval shipbuilding is delivered through precincts, where large integrated shipyards are supported by co-located specialist industry. This model concentrates capability, workforce and infrastructure in one location, allowing prime shipbuilders to draw on specialist fabrication, engineering and maintenance capacity alongside them. The Henderson Defence Precinct is being developed on this model, and Civmec’s established facilities, capability and location within the Precinct position it to play an important role as part of that industrial base.
The local build of the frigates represents a significant increase in naval shipbuilding activity in Western Australia. Delivering a programme of this
scale will require a broad and capable local industrial base. Civmec offers a combination of capabilities that is unique within the Henderson precinct:
-large-scale undercover fabrication and assembly facilities;
-heavy engineering, structural, mechanical and piping capability;
-an established naval shipbuilding workforce and quality systems, proven through the Arafura Class programme;
-CDI’s experience as a prime defence contractor.
Potential avenues for participation include fabrication and outfitting of hull blocks, modules and major structures, as well as supply-chain and specialist manufacturing scopes. They also include sustainment activity and the construction of the precinct infrastructure required to support the
programme. Civmec continues to engage with the Commonwealth, the State and othermindustry participants. The Group will pursue opportunities where its capabilities can add value to the programme and deliver appropriate returns for shareholders.
Q5. With Henderson defence precinct boundary now defined:
i) What are the kind of expected specific opportunities that Civmec is capable to bid on to be part of the infrastructure build out for the defence precinct?
Company Answer:
As outlined in our response to Q3, the confirmed zone allocation CIvmec well positioned to pursue opportunities in the Precinct’s build and development programmes. The Commonwealth has indicated that the
Precinct will include:
-construction facilities for shipbuilding and sustainment;
-support infrastructure for submarines and surface combatants;
-contingency docking capability for Australia’s future nuclear-powered submarines;
-depot-level maintenance facilities;
-construction of alternative common user facilities.
Delivering this infrastructure will involve substantial marine and civil works, piling and structural concrete, and heavy structural steel fabrication and
erection. It will also involve structural, mechanical and piping, and electrical and instrumentation installation, along with modular construction. These are core Civmec capabilities that the Group delivers routinely for major resources, energy and infrastructure clients. Civmec’s location within the Precinct and its large-scale fabrication facilities at Henderson are further advantages. The Group expects to pursue packages across both the construction of Precinct infrastructure and the fabrication of major structures. It will also look at the ongoing maintenance and support of Precinct facilities once they are operational. Civmec will assess each opportunity on its merits, consistent with its disciplined approach to tendering.
ii) What are the kind of engagements that Civmec are having with Bechtel in the master planning stage?
Company Answer:
Bechtel Infrastructure Australia has been appointed by the Commonwealth to develop the master plan for the Henderson Defence Precinct, working
with Defence, the Western Australian Government and industry. Bechtel’s engagement is with the Commonwealth and is not through Civmec.
As a long-standing operator within the Australian Marine Complex, Civmec participates in stakeholder engagement on the Precinct’s development,
including with the Commonwealth, the State and the master planning team. The Group’s focus in these engagements is on ensuring the Precinct’s
design supports continuity of operations for existing industry. It also seeks to make Civmec’s capabilities and facilities known as planning progresses. CIvmec does not comment on the detail of these discussions. The Group looks forward to further information on the scope, staging and procurement approach for the Precinct as master planning is completed.
iii) What are the potential impacts to your non defence businesses with expected high
Company Answer:
The Group’s primary focus is workforce. As a Registered Training Organisation, Civmec trains and upskills its people in-house. It maintains a substantial apprenticeship and graduate programme and continues to invest in recruitment to secure the skilled workforce needed for current and
future projects. The Group is also broadening its recruitment channels to support growth. Civmec continues to work with the Commonwealth and the State on transitional and logistics arrangements as the Precinct develops, so that existing operations can continue to be delivered efficiently. The Group’s regional facilities in Newcastle, Gladstone and Port Hedland give it additional capacity and flexibility to allocate work across its network where appropriate.’
