MELBOURNE — Australia's historic Williamstown shipyard, which built all 10 ANZAC-class frigates for the Royal Australian Navy and Royal New Zealand Navy, is under contract for sale to EMKC³, an Australian property development and funds management company partly owned by Hong Kong-based EMKC Group. The deal has raised concerns over Australia's remaining naval shipbuilding infrastructure and national security.
The 16.8-hectare facility, located near the entrance to the Port of Melbourne, was offered for sale in 2024 with an estimated value of up to A$200 million. EMKC³ senior development manager Felicity Richardson confirmed the contract, saying the company is consulting stakeholders on future uses. The final sale price has not been disclosed, and the transaction is understood to be proceeding without Foreign Investment Review Board scrutiny.
Security Concerns and Future Plans
The buyer's Hong Kong connection has drawn attention because China's national security and intelligence laws can require organisations operating in Hong Kong to cooperate with Chinese intelligence agencies.
Opposition defence spokesman James Paterson raised concerns about losing the facility, highlighting Australia's continuing need for domestic naval shipbuilding capacity and the shipyard's heritage value. Michael Shoebridge, director of Strategic Analysis Australia, criticised the sale as a "strategic failure in decision making by governments, federal and state".
EMKC³ has proposed transforming the waterfront site into a productive commercial asset, potentially including a waterfront promenade, green spaces, residential and retail facilities, alongside light industry. Victorian planning rules require the site to retain industrial and marine engineering uses.
Shipbuilding Legacy and Australia's Naval Transition
Established in 1858, Williamstown built all 10 ANZAC-class frigates. After BAE Systems Australia acquired the site in 2008, it also manufactured the superstructures and completed the internal fit-outs of the two Canberra-class amphibious assault ships, HMAS Canberra and HMAS Adelaide.
The yard has not completed a large vessel since 2016, leading to significant workforce layoffs as major shipbuilding operations ended.
The sale comes as Australia phases out its ageing ANZAC-class frigates and plans to acquire 11 Japanese-designed New FFM multi-purpose frigates, with eight expected to be built domestically. The government is also investing in specialised facilities for the SSN-AUKUS nuclear-powered submarine programme.
BAE Systems Australia has confirmed the sale process is underway but declined further comment until completion. The shipyard's future industrial and marine engineering use remains under discussion.
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