An official statement from Austal said that the company would close the shipyard
at the conclusion of its current shipbuilding project in September 2010.
The site was home to 116 staff that will be shed over the coming months.
Head of Operations Andrew Bellamy says there is less demand for smaller ships which it can build more efficiently at its West Australian shipyard.
"Based on Austal's current assessment of the global market, the forecast demand for smaller passenger ferries and small patrol boats can be fully serviced out of the Henderson facilities in Western Australia."