Final tick for landmark defence contract

Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick has welcomed the official signing of a $5 billion landmark defence deal which will see Queensland playing the leading role manufacturing a new generation of vehicles for the Australian Army.

Rheinmetall Defence Australia and the Australian Government have now signed the LAND 400 Phase 2 contract for an order of 211 Boxer Combat Reconnaissance Vehicles, marking the final tick of approval for work to begin on building the vehicles.

While the first 25 vehicles will be built in Rheinmetall’s German factory, the remaining vehicles plus 12 extra modules such as ambulance modules will be built in Queensland through a new Military Vehicle Centre of Excellence and RDA’s Australia-New Zealand headquarters to be built at Redbank Industrial Estate, near Ipswich.

Minister Dick said the contract signing was the latest milestone in the LAND 400 story, in which the Palaszczuk Government had played an active role by successfully campaigning for Rheinmetall to choose Queensland to deliver the Phase 2 project.

“This is one of the most important defence manufacturing projects our state has ever seen, and I’m proud to be part of a government which has helped generate this win for our state through consistent support of Rheinmetall, including two Ministerial trade trips to Rheinmetall’s German base,” he said.

“The partnership between the Queensland Government and Rheinmetall has resulted in these combat vehicles being built here in Queensland, delivering 450 direct advanced manufacturing and engineering jobs and $1 billion pumped into the state’s economy in the first 10 years alone.

“For businesses stretching from the Gold Coast to Cairns which are involved in the extensive supply chain, this contract will deliver hundreds of jobs, boost investment, drive high-tech innovation and create global export opportunities.

“Our state will also soon be home to Rheinmetall’s biggest presence outside of Germany and an industrial hub of research and development which will achieve an average of around 300 direct jobs during the two years of construction and many more ongoing highly-skilled jobs once operational.

“This contract is just the beginning of Rheinmetall’s journey in Queensland, which will deliver benefits to our economy for decades to come.

“It is also part of our journey as a government, as we continue to position Queensland as the nation’s defence manufacturing powerhouse.”

ENDS

Media contact: Anika Hume 0447 320 039