Defence firms join forces

Partnership and grant expected to create jobs

A LARA defence manufacturer will pool resources with a French multinational with a base in Victoria to streamline its production of up to 20,000 grenades a year under a partnership signed last week.

Australian Defence Force supplier Chemring Australia will continue to design and manufacture smoke grenades from its Staceys Rd facility and plans to use some components developed by explosive grenade manufacturer Thales.

Chemring defence business manager David Bloor said components made by both companies could be shared under the partnership.

“We both realise that due to the commonality of our products, there are some synergies in our product manufacturing that could be achieved,” Mr Bloor said.

“From a supply chain perspective, if you partner with another company who (make) and utilise similar components, then you can be in a position to reduce some of your costs.

“There may be some elements (of grenades) that Chemring in Lara make for both Chemring and Thales, and vice versa.”

He said the company’s memorandum of understanding with Thales would give Chemring greater flexibility to improve and develop products when asked by the ADF.

“We had one (request) where there was a requirement to make the grenade safer to handle, so we changed the safety mechanisms,” he said.

“If you have local companies that react quickly to users needs, then it makes sense to utilise them together. Procurement in the military space, a lot of it, is often done overseas.”

Mr Bloor said Chemring — which supplied smoke grenades to the army — might look to export more of its prod- ucts following the partnership with Thales.

Dion Habner, managing director of Thales in Benalla and NSW, said the company was committed to enhancing the technological advantage of the ADF.

“This agreement is a key enabler to support Australia’s sovereign munitions design and manufacturing capability, and deliver a battle-winning capability to Australia’s warfighter,” Mr Habner said.

“This range will provision for through-life upgrade pathways to enable integration of the latest technologies.”

The deal between Chemring and Thales was signed in Adelaide last week at the Land Forces defence exhibition. The event hosted senior international military, defence, government, scientific and industry delegations from around the world.

Last month Chemring was given a $1.2 million State Government grant to expand its Lara facility to better enable it to design, install and commission manufacturing, and test infrastructure for the F35-Lightning II (Joint Strike Fighter) countermeasures.

These countermeasures include flares that protect the planes from ground-to-air infrared-guided missiles. The grant is expected to create 40 jobs.

“There may be some elements (of grenades) that Chemring in Lara make for both Chemring and Thales, and vice versa.” CHEMRING’ S DAVID BLOOR