The new agreement, which covers continued manufacturing of munition in Benalla and Mulwala, will help secure hundreds of regional jobs.
The agreement provides surety of supply of key munitions and components for the Australian Defence Force (ADF), and demonstrates the government’s ongoing commitment to maintaining a domestic munitions manufacturing capability.
Defence Minister Linda Reynolds said this week's announcement meant the manufacturing sector could retain local skills and expertise.
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“It’s vital that we continue to enhance the readiness of the ADF and ensure we have the necessary sovereign depth for sustaining key capability and materiel such as the surety of supply of munitions,” Ms Reynolds said.
“This agreement with Thales Australia will continue to maintain a safe and compliant operation, and increase our domestic capacity to manufacture key munitions in support of ADF operations.
“Mulwala and its sister facility in Benalla are the home of munitions manufacturing in Australia, generating vital job opportunities in regional Victoria and NSW.
“This new agreement not only reinforces the 20-year strong partnership between Defence and Thales Australia, but also provides job certainty for the more than 650 highly-skilled workers at these factories.
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“These jobs will be vital as the Australian economy recovers from COVID-19.”
Defence Industry Minister Melissa Price said the Federal Government had identified munitions and small arms as a critical capability for a sovereign defence industry.
“We’ve developed and implemented a plan to grow munitions and small arms capability in Australia, as one of our Sovereign Industrial Capability Priorities,” Ms Price said.
“It’s about identifying critical capabilities for the ADF, but also about strengthening our defence industry and creating new opportunities.
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“Thales Australia has an excellent track record of working with local small businesses and I have no doubt they’ll continue to utilise the skills and ingenuity of small businesses right around Australia.”The new agreement underpins the renewed strategy of multi-tenancy at the factories and ensures access and support to other companies, particularly small-to-medium enterprises for munitions manufacturing.
It will also support key Federal Government initiatives including export opportunities as part of the Defence Sovereign Industry Capability Priorities.
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