BAE Systems Australia has agreed a $200 million package with Victoria’s defence industry as part of its bid to secure LAND 400, the army’s largest vehicle acquisition program to date.
BAE, which faces competition from Rheinmetall Defence Australia for the multi-billion project, said the agreement covers the upgrade and maintenance of the vehicles during their decades of service in the Australian Army.
The work will be carried out by a number of Victorian suppliers including Marand, MOOG Australia, Motec, AME Systems, RUAG Australia, DVR Engineering, Milspec and APV.
Marand, for example, will manufacture the hulls of the combat proven AMV35, while the other companies will contribute specialist manufacturing expertise including heavy fabrication, electronic systems and complex assemblies.
BAE Systems has committed to producing the AMV35 locally. It said the build phase of the project will generate about 100 supply chain jobs and create downstream employment and economic benefits for the state.
Additionally, the company has committed to invest 20,000 hours to transfer the advanced manufacturing knowledge and capability to the Australian workforce, ensuring long lasting employment and enduring Sovereign capabilities.
“Victoria’s defence industry is recognised for its world class capabilities and the companies that we have selected as partners have proven experience and leading edge manufacturing capabilities,” said BAE Systems Australia Chief Executive Glynn Phillips.
“Australian production, future upgrades and support of these world class vehicles will create long-term jobs and deliver strong, sustainable economic benefits throughout the community.”
The company, which has yet to decide on the location of the vehicle manufacturing facility, is now expected to make further announcements about partnerships with leading SMEs in other states and territories.
