Victoria builds case for war machine contract, 2000 jobs

VICTORIA’S bid for a multibillion dollar defence contract has been boosted by new investment in homegrown content.

A world-leading ballistic armour manufacturer has chosen Bayswater-based BAE Systems Australia to partner with to build the new defence force combat vehicles.

The Turnbull Government is set to decide in the next three months whether Victoria or Queensland will be the base for the LAND 400 production, army’s biggest manufacturing project to build hundreds of new war machines.

If Victoria wins the contract, RUAG Australia would be in charge of making the external armour plating for the AMV35 combat reconnaissance vehicles — the first time the technology would be built in Australia.

BAE Systems Australia chief executive Gabby Costigan said it was another example of how the company’s bid was increasing Australian capability and boosting local jobs and investment.

“It brings into Australia new know-how and develops local sophisticated military technology capability that saves lives,” Ms Costigan sad.

“It builds on BAE Systems’ unique track record of localising production and supply chains, something we can do with low risk and high value for Australia.”

RUAG Australia’s managing director John Teager said the Land 400 project would create potential for future export opportunities.

“The sort of technologies we’re starting to establish with this program, the ultimate goal is to export this not only wider in the region here, but perhaps globally,’’ he said.

He said RUAG’s applique armour was already in service with a number of western armies and was a natural choice for the Phase 2 bid.

A group of Victorian MPs — including Cabinet ministers Josh Frydenberg, Kelly O’Dwyer, Dan Tehan and Greg Hunt — met Defence Industry Minister Christopher Pyne last week to push Victoria’s case.

About 2000 jobs would be created by the LAND 400 project, and Victoria’s pitch with military giant BAE Systems would be about 20 per cent cheaper than the Queensland option.

The MPs argue Victoria offers a manufacturing and engineering workforce “unmatched by any other state”.