Civmec to acquire Luerssen Australia in $20m deal, strengthening sovereign naval shipbuilding

Civmec Limited has announced it will acquire Luerssen Australia for $20 million in a move set to strengthen Australia’s sovereign shipbuilding capability and streamline delivery of the Royal Australian Navy’s Arafura class offshore patrol vessels (OPVs).

The acquisition, expected to be completed by 1 July 2025 pending Commonwealth approval, includes all assets, licences, and the transfer of Luerssen Australia’s workforce. Civmec, a longstanding partner in the OPV program, will take full control of construction activities at both the Osborne South shipyard in South Australia and its own Henderson facility in Western Australia.

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Luerssen Australia, a subsidiary of German-owned NVL Group, has been leading the SEA 1180 OPV program since 2017. The program, aimed at delivering six new patrol vessels to enhance Australia’s border and maritime security, has experienced several delays, with the first vessel now over three years behind its original delivery schedule.

Civmec’s acquisition aims to reset the program by integrating design, construction, and sustainment under a single Australian-owned entity. The company has already entered a service agreement with Luerssen Australia to ensure continuity of operations and begin implementing cost-saving and schedule-improvement measures during the transition period.

Civmec executive chairman Jim Fitzgerald described the move as a “natural step” for the company, positioning Civmec as a leading sovereign naval shipbuilder with world-class facilities and an experienced workforce.

“The acquisition of Luerssen Australia is a natural progression for Civmec. We are committed to ensuring the continued delivery of these vital naval assets, while also enhancing Australia’s sovereign industrial capability in shipbuilding,” Fitzgerald said.

Tim Wagner, chairman of Luerssen Australia and CEO of NVL Group, expressed confidence in Civmec’s ability to see the OPV project through to completion and reaffirmed NVL’s continued support during the transition.

The deal is a significant moment for Australia’s defence industry, with Civmec now set to play a central role in delivering one of the Navy’s largest active shipbuilding programs. It also signals a broader shift towards sovereign control and integration of complex defence projects amid rising strategic demands.