The Victorian government has allocated $10 million in funding to support manufacturers and businesses in the state vying for lucrative defence contracts.
The grant made through the Victorian Land Systems Fund will assist local businesses that seek to join Hanwha Defense Australia’s supply chain, which will deliver the $1 billion LAND 8116 Self Propelled Howitzer program.
Military weapons manufacturer Hanwha recently secured the $2 billion defence contract that will see the Commonwealth acquire self-propelled artillery, which will be manufactured in the Greater Geelong area of Victoria.
In a press release, the Victorian government said the investment aims to create more local jobs and boost the state’s economy.
“This funding is about maximising opportunities for local businesses and manufacturers to enter Hanwha’s supply chain, ensuring more Victorian-made components are used in the company’s products worldwide,” said Ben Carroll, minister for industry support and recovery.
In a bid to maximise the value of Hanwha’s defence contracts to the state, the Supply Chain Uplift Program will allocate up to $100,000 for Victorian small to medium-sized businesses.
The initiative is expected to help improve the businesses’ capability through various initiatives, such as upgrading business systems and facilities, gaining international accreditations and certifications, or undertaking research and product development.
“The Land Systems Fund from the Victorian Government will allow Hanwha Defense Australia to invest in both our growth and that of our supply chain,” said Hanwha’s CEO Richard Cho.
Over 6,000 businesses are involved in Victoria’s defence sector, manufacturing equipment and providing services across military vehicle production, maritime design, aerospace components, and cyber security.
