Palaszczuk Government and Rheinmetall Defence Australia unite in fight for Queensland jobs

The Palaszczuk Government has set its sights on Queensland reaping the benefits of drawing the biggest and most strategically important advanced manufacturing program to the state, today joining with Rheinmetall Defence Australia for an industry event in Wacol as the LAND 400 campaign heats up.

Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said anticipation was mounting ahead of the Commonwealth Government’s pending announcement of the LAND 400 Phase 2 contract, estimated to be worth up to $5 billion.

“With Rheinmetall Defence Australia committed to establishing its manufacturing facility in Queensland if it is awarded the contract, a campaign win will be an economic and industry development game-changer, heralding the beginning of a new next-generation armoured military vehicle manufacturing industry for Queensland,” he said.

“These are 450 highly skilled advanced manufacturing and engineering jobs that the Palaszczuk Government has been working since April 2016 to attract to Queensland.

“The manufacture of a military vehicle like the Boxer, one of the most technologically advanced combat reconnaissance vehicles in the world, in addition to other future defence projects that Rheinmetall may be involved in, are catalytic projects that will completely transform the defence industry environment in Queensland.”

Rheinmetall Defence Australia Managing Director Gary Stewart said his group was excited about potentially establishing its Australian-New Zealand Headquarters and Military Vehicle Centre of Excellence (MILVEHCOE) in South East Queensland.

“We are confident that we are offering the best solution for the Australian Army’s new generation of combat reconnaissance vehicles,” Mr Stewart said.

Rheinmetall today hosted a showcase event at Hilton Manufacturing in Wacol, one of its trusted industry partners that will also reap the benefits of Rheinmetall’s new MILVEHCOE.

“Hilton Manufacturing is thrilled to extend our relationship with Rheinmetall from current programs to exciting and new opportunities arising from Rheinmetall’s new facility,” said Hilton Manufacturing Managing Director Todd Hartley.

“We look forward to welcoming them to Australia’s largest heavy manufacturing and sustainment precinct right here in South East Queensland.”

Mr Dick said the establishment of the MILVEHCOE in South East Queensland would be an invaluable coup for the state.

“The MILVEHCOE will generate jobs, contribute up to $1 billion to the state’s economy in the first 10 years, and will position Queensland at the forefront of military vehicle development, manufacture and support for the next 50 years,” he said.

“With over 100 of the new military vehicles expected to be based at the Townsville and Enoggera Army bases, this could also potentially create long-term support and maintenance opportunities for local industry for decades to come.”

Along with others from across Australia, Rheinmetall has already announced several regional Queensland companies for its LAND 400 supply chain, including Redcat Industries from Cairns, Global Manufacturing Group from Maryborough, and G & O Kert from Acacia Ridge.

Rheinmetall is also working closely with NIOA, a Brisbane-based munitions supplier that only last week won a Department of Defence contract worth $100 million, its second such contract in as many months.

Mr Dick said Rheinmetall’s LAND 400 Phase 2 industry partners will have the opportunity to not only supply into Rheinmetall’s Boxer vehicle for the Australian market, but to also potentially enter Rheinmetall’s global supply chain for its other military projects.

“Partnering with a global defence giant like Rheinmetall can open the doors for a lot of opportunities for our local companies,” he said.

“Not only do they benefit from the initial contract, they also benefit from the transfer of skills and technology from Rheinmetall, and that can exponentially increase many enterprises’ global competitiveness and export potential in their own right.

“Our state is already home to leading capabilities in many fields that will be essential to the future of the defence sector in Australia, including heavy vehicle manufacturing, C4ISREW, systems integration, autonomous systems and microelectronics.

“The partnership with Rheinmetall and the development opportunities that it offers to our companies will allow us to further grow these capabilities and position Queensland as the obvious destination for the next generation of defence procurement projects.

“Queensland is the natural home for modern, land defence projects like LAND 400 and Rheinmetall’s selection of Queensland as its preferred location for their Australia-New Zealand headquarters and MILVEHCOE is testament to all the advantages that a Queensland location offers.

“The Palaszczuk Government looks forward to a long-term partnership with Rheinmetall Defence Australia and to continuing to grow Queensland’s reputation as Australia’s front line for defence industries.”

ENDS

Media contact: Anika Hume 0447 320 039