The last shipyard in Victoria capable of building and maintaining large military vessels is being sold to a developer part-owned by a Hong Kong company.
The strategically-located Williamstown shipyard overlooks the entrance to the Port of Melbourne, the busiest container port in Australia.
The shipyard dates to 1858 and constructed all ten ANZAC class frigates for Australia and New Zealand, as well as the superstructure and internal fitout of Australia’s two Landing Helicopter Dock (LHD) vessels, HMAS Canberra and Adelaide.
Currently owned by BAE Systems Australia (BAESA), the last work at the yard wrapped up in 2016. Much of the staff were laid off and the site was put up for sale in 2024 with an estimated price tag of up to $200 million.
While its future is unknown, state legislation requires it to remain used for marine engineering.
BAESA have confirmed the sale process is underway but declined to comment until the process has concluded. The company purchasing the site is EMKC3, an Australian based property funds management business that is part-owned by EMKC Group based in Hong Kong.
It is not known whether EMKC Group is the majority owner of EMKC3.
“EMKC3 is the contracted purchaser of the BAE Williamstown site and has been working with key stakeholders on a range of future uses for the site,” said Felicity Richardson, Senior Development Manager at EMKC3. “As per the terms of the sale contract, we won’t be providing further commentary at this stage.”
The complex sale must navigate Commonwealth land ownership and Victorian State Government planning jurisdiction. The State’s Planning and Environment Bill was updated in 2005 to ensure the continued use of the site is for industrial and marine engineering purposes. While this does appear to rule out redevelopment for residential purposes, questions remain regarding EMKC3’s intentions for the site, which ADM understands is being sold for considerably less than the 2024 estimate of $200 million.
Due to EMKC3’s foreign ownership component, it is possible that Treasury’s Foreign Investment Review Board may become involved in the sale.
A Treasury spokesperson declined to provide information as the Foreign Acquisitions and Takeovers Act of 1975 prevents any comment on the application of the foreign investment screening arrangements.
The involvement of a company based in Hong Kong in the sale of a strategic Australian shipyard follows recent revelations that the Chinese government intercepted Australian F-35 parts in transit through Hong Kong.
The Chinese government is also able to exert influence over the staff of Hong Kong resident companies.
“The stricter regulations on national security and relations to foreign entities, passed in March 2024, has compelled some international companies to try to quarantine information from their Hong Kong office and Hong Kong based staff,” said Dr Corey Bell, a former Adjunct Fellow at the University of Technology Sydney’s Australia-China Relations Institute. “For a company that is headquartered in Hong Kong, they are highly exposed to whatever the authorities may ask of them.
“I have no doubt that this sale will be something that Chinese intelligence authorities are now looking into.”