Queensland wins big with LAND 400 and Rheinmetall

Today’s announcement by the Federal Government that Rheinmetall Defence Australia is the successful tenderer for the LAND 400 Phase 2 contract is a watershed moment for Queensland’s manufacturing industry and the jobs it supports.

Premier Annastacia Palaszczuk said the announcement marks the culmination of a lengthy and active campaign from her Government to secure the $5 billion contract for Queensland.

“This heralds the beginning of a new military vehicle manufacturing industry for Queensland,” the Premier said.

“The LAND 400 Phase 2 contract to deliver the next generation of Combat Reconnaissance Vehicles to the Australian Army is a significant step forward for Queensland manufacturing.

“Our success in attracting a global defence giant like Rheinmetall to Queensland will create opportunities for local industry for decades to come.

“Rheinmetall Defence Australia has also committed to establish its Australia-New Zealand Headquarters and Military Vehicle Centre of Excellence (MILVEHCOE) in South East Queensland, and this facility will become a regional hub with an expected program of continuous design, build and support for up to 5000 military vehicles in Australia and the Asia Pacific.”

Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said Queensland was ready to reap the benefits of the win, including job creation, booming business and invaluable industry growth.

“This landmark project is an economic game-changer that will create 450 advanced manufacturing and engineering jobs for Queenslanders and pump $1 billion into the state’s economy in the first 10 years,” he said.

“Winning this contract will drive high-tech innovation, boost investment, and create global export opportunities for everyone along the extensive supply chain across the state.

“Rheinmetall’s success is testament to all the advantages that a Queensland location offers to modern defence projects, and cements the state’s reputation as Australia’s front line for defence industries.”

Mr Dick said while Rheinmetall’s MILVEHCOE will be located in the state’s South East, regional companies were set to enjoy the rewards of a Queensland base for the German company.

“Last year Rheinmetall met with 211 companies in nine Queensland regional centres and have already announced teaming arrangements with four regional businesses and others in Brisbane,” he said.

“With over 100 of the new military vehicles to be based in Townsville and Enoggera, regional businesses will be able to capitalise on supply and support opportunities.”

Queensland companies already set to benefit include Redcat Industries from Cairns, Global Manufacturing Group from Maryborough, LaserDyne Technologies from the Gold Coast, and NIOA, G & O Kert and Hilton Manufacturing from Brisbane and Ipswich.

Rheinmetall Defence Australia Managing Director, Gary Stewart said that selecting Queensland as the home for its MILVEHCOE - which will be their biggest presence outside of Germany - was a natural choice given the proximity to the largest Army presence in the nation, the existing heavy vehicle precinct, the skilled and ready workforce, and the ecosystem of high-tech defence companies already here.

“We are committed to transferring expertise and advanced military technology into Australia and creating an industrial hub of research and development that will create a strong sovereign military vehicle capability that will be globally competitive for infantry fighting vehicle programs worldwide,” Mr Stewart said.

Mr Dick said the Palaszczuk Government had worked hard to convince Rheinmetall to choose Queensland to build Australia’s new CRV.

“The Palaszczuk Government was always confident that Rheinmetall’s Boxer was the best vehicle for our diggers and that Queensland was the best location for modern, military vehicle manufacturing projects,” he said.

“Ben Roberts-Smith, Victoria Cross winner and undeniably one of the country’s most highly-respected veterans, publicly championed Rheinmetall’s Boxer as the option that will provide our servicemen and women with the most protection, one of the Commonwealth’s key criteria and one backed by all Australians.

“Rheinmetall will draw on skills, services, products and capability from every state and territory in Australia, and with such high levels of Australian industry participation it is a national defence project of which we can all be proud.

“In particular, Rheinmetall’s choice to use high performance armour steel that has been designed, developed and manufactured on home soil is further evidence of Rheinmetall’s commitment to Australia.

“The Palaszczuk Government worked on attracting the LAND 400 Phase 2 contract to the state for nearly three years and we now look forward to a long and mutually beneficial partnership with Rheinmetall Defence Australia.”

Media contact:

Premier’s Office:                  Geoff Breusch 0417 272 875

Minister Dick’s Office:          Anika Hume    0447 320 039