The Morrison Government’s more than $1 billion defence contract for new self-propelled howitzers for the Australian Army has marked a significant milestone with the start of construction of an Armoured Vehicle Centre of Excellence at Avalon, near Geelong.
Prime Minister Scott Morrison today led the sod-turning for the Armoured Vehicle Centre of Excellence, which will build the self-propelled howitzers and armoured ammunition resupply vehicles.
The Prime Minister said the project would deliver a major economic boost for Geelong with more than 300 jobs to be delivered over its lifespan.
“With the turn of the sod today at Avalon we are keeping our promise, securing Geelong’s rightful place in our country’s advanced manufacturing and defence industry, creating skilled jobs and delivering huge economic benefits for the region,” the Prime Minister said.
“As construction ramps up it will create up to 100 jobs, and once this cutting edge facility is up and running around 300 locals will be employed at the site.
“Importantly, several local businesses will be engaged along the way to help deliver this critical $1 billion defence project. This includes an Australian-owned Victorian-based construction company that will build this $170 million facility with completion by 2024.
“This project is a clear demonstration of my Government’s commitment to securing a strong economy and a strong future for all Australians, with investments in both our economic and national security.
“When Labor was last in Government they delayed this project, before cancelling it entirely when they drove down defence spending to its lowest level since before the Second World War.
“In contrast, Australians know they can trust my Government to make the tough decisions and make strategic investments that secure Australia’s interests in an increasingly uncertain world. Since we have come to office we have rolled out our plan to protect Australians, and this $1 billion contract is a key part of that plan.”
The turning of the sod today follows the signing of a $1 billion defence contract in December last year for the new self-propelled howitzers, which was awarded to Hanwha Defence Australia.
Based in Greater Geelong, the contract will procure self-propelled howitzers and armoured ammunition resupply vehicles under the LAND 8116 Phase 1 project. The Government committed to this project in May 2019.
Hanwha will build 30 of the self-propelled guns and 15 armoured ammunition resupply vehicles used to replenish stocks of artillery shells on missions.
Minister for Defence Industry Melissa Price said the $1 billion contract again demonstrated the Morrison Government’s commitment to supporting jobs in Australia’s growing defence industry.
“This project will create hundreds of jobs, with more than 90 per cent of vehicle sustainment to be completed in Australia,” Minister Price said.
“The opportunities for our defence industry are significant and will benefit local companies until the late 2040s.
“The self-propelled howitzers are just the latest step in the Morrison Government’s 10-year plan to invest $270 billion to increase Defence capability, not only securing the defence of our nation but bringing enormous benefits to our defence industry.
“The big advantage of these highly mobile, hard-hitting weapons is that they can fire, and immediately move, before any enemy can accurately locate them.
“The new guns, mounted on tracks and with heavy armour, offer much better protection to their crews in the face of nuclear, biological, chemical and radiological threats.
“The result is that our troops have a mobile and versatile weapon system that gives them the best possible chance of successfully completing their mission and returning home safely.”