Premier Backs Victorian Businesses with Strategic Defence Supply Agreement

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The Victorian government is assisting supply chain businesses to help them secure significant contracts and enhance the state’s defence capabilities and expertise.

Hanwha Defense, Australia’s $170 million Armoured Vehicle Centre of Excellence, currently being constructed at the Avalon Airport Industrial Precinct, was visited by the Minister for Manufacturing Sovereignty, Ben Carroll.

The site will manufacture the company’s self-propelled howitzers for the Commonwealth’s LAND 8116 program. This will lead to the creation of more than 300 new highly skilled jobs in design, engineering, and advanced manufacturing.

Hanwha is one of the two remaining bidders for the Commonwealth’s LAND 400 Phase 3 program. If their bid is successful, the company’s Avalon site will also manufacture their infantry fighting vehicles nicknamed the ‘Redback’.

During the visit, Mr Carroll announced the first round of recipients for the Victorian Land Systems Fund – Supply Chain Uplift Program. This program will assist local companies in joining Hanwha’s supply chain by meeting critical technological, business systems, and accreditation requirements.

“The Victorian government is committing to support the development of an advanced defence manufacturing capability,” Mr Carroll said.

“We understand that local businesses need assistance to meet the specific requirements of major defence projects, and we are investing in them so they can take up these opportunities.”

The Australian government grants nearly $200,000 to five land systems defence companies for their respective projects. Among these companies are APV Corporation, located in Campbellfield, which will create a unique military seatbelt, and Hannagan Solutions from Waurn Ponds, which will develop custom textiles to protect and camouflage military vehicles and soldiers.

Australian Precision Technologies and Redline Engineering will use the grants to improve their cyber security systems. Diamond Defence plans to introduce a quality management system to achieve industry certification.

The Labor Government assisted Hanwha in setting up their defence manufacturing operations in the state. Victoria’s defence sector comprises approximately 6,300 businesses, employs about 24,300 individuals throughout the industry, and contributes $8.4 billion annually to the state’s economy.

“To encourage the use of Victorian-made products by global defence companies such as Hanwha, we are supporting small and medium businesses to participate and succeed in significant contracts,” said Minister for Manufacturing Sovereignty Ben Carroll.

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