Queensland in line for billion-dollar defence contract

The Rheinmetall Boxer CRV.

One of the contenders for a looming $5 billion defence contract will base itself in Queensland if it is successful, Queensland Premier Annastacia Palaszczuk has announced.

Rheinmetall Defence Australia would establish its Australia-New Zealand headquarters and a manufacturing and vehicle maintenance facility in South East Queensland if it wins the upcoming LAND 400 Phase 2 contract to supply Australia’s new armoured vehicles, potentially generating 450 long-term jobs and contributing more than $1 billion to the state’s economy over the next 10 years.

Currently the largest supplier of military vehicles to the Australian Defence Force, Rheinmetall will establish the MILVEHCOE as a sovereign industrial capability for the continuous design, manufacture, export and support for military vehicles, turrets and tactical systems. The MILVEHCOE will also draw on a supply network across Australia to deliver products and services from local industry into Rheinmetall’s global supply chain.

Rheinmetall is delivering more than 2,500 logistics trucks to the Australian Army under the LAND 121 Phase 3B program and is currently bidding for the supply of the armoured combat reconnaissance vehicle under the Commonwealth of Australia’s Land 400 Phase 2 program.

Rheinmetall Defence Australia has selected Queensland as its preferred location to build the ‘military vehicle centre of excellence’ (MILVEHCOE) if it wins the contract to deliver 225 combat reconnaissance vehicles for the Australian Army. 

Around 100 of these vehicles are expected to be located at the Townsville and Enoggera bases.

Defence industries employ approximately 6,500 people across the state and generate more than $4.2 billion in annual revenue.

Most of the new jobs would be expected to be highly skilled, highly paid advanced manufacturing and engineering jobs.

Under the LAND 400 Phase 2 contract, Rheinmetall would need to have its facility completed by mid-2020 to supply the first Boxer CRV by 2022.

Rheinmetall is one of two companies vying for the Department of Defence’s Land 400 Phase 2 contract, which is expected to be announced in the first quarter of next year. The other company is BAE Systems Australia, which has yet to announce where it would manufacture its vehicles if it were to win the Land 400 contract.

An existing network of Queensland-based companies supports many of Rheinmetall’s current projects in Australia and overseas, including Nioa, Penske, Holmwood Highgate, Hilton, Harris Communications, Haulmark, ELBIT and LaserDyne Technologies.

Supashock: from partnership to purchase

In the lead-up to the LAND 400 Phase 2 contract decision, Rheinmetall has purchased one of its suppliers, South Australia-based Supashock.

Supashock creates active suspension for motorsport and automotive applications to improve performance, safety and ride quality. Rheinmetall MAN Military Vehicles (RMMV) provided funding to Supashock in May 2017 to develop an integrated active suspension system and intelligent load handling system for the Australian and international markets that will substantially increase the capability and safety of RMMV’s military trucks in demanding on and off-road environments.

Through comparative testing, Supashock’s suspension technology has been shown to substantially improve the mobility of Rheinmetall MAN Military Vehicles (RMMV) trucks, while at the same time enhancing on-road safety and reducing the shock and vibration experienced by the load the truck is carrying.


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