"This is a great achievement with the steel being cut by Navantia seven weeks ahead of schedule," Combet said.
"The Commonwealth has contracted BAE Systems Australia to provide two large Amphibious Ships (LHDs) that will form part of the ADF's broader amphibious deployment and sustainment system.
"Under the project the Spanish shipbuilder Navantia is the design authority and is subcontracted to BAE Systems Australia to construct and fit out the hulls of two large Amphibious Ships for the ADF.
"I am pleased to report that the LHD project is on schedule, with whole of ship design reviews completed and the keel laying of LHD 01 taking place exactly one year to the day from first steel being cut."
After completion of LHD 01 and 02, both hulls will be transported to Australia where the superstructures will then be constructed, fitted out and integrated with the hulls at BAE Systems' Williamstown dockyard.
Once the hull arrives at Williamstown dockyard, the combat system will be installed by SAAB Systems Australia, which will also integrate the combat management system.
The communications system will be supplied by L-3 Communications.
The next milestone will be the launch of LHD 01 in Spain in March 2011.
LHD 01 will arrive at Williamstown dockyard in 2012, with LHD 02 arriving in 2014.