Team Queensland has applauded the Commonwealth for today’s decision to award the Land 400 Phase 2 contract to Rheinmetall Defence Australia which will base its operations in Queensland.
The announcement comes after months of advocacy by Team Queensland – a bloc of 26 Federal LNP Senators and MPs – which supported Rheinmetall’s bid to build its BOXER CRV in the State.
Federal Member for Fairfax Ted O’Brien MP, who led the charge for Team Queensland, said the BOXER was internationally acknowledged as the most capable and protected combat reconnaissance vehicle in the world.
“Not only has the Turnbull Government put the safety of our Australian service men and women at the forefront of its decision making but in doing so has also ensured the creation of an Australian military vehicle industry that will export globally,” Mr O’Brien said.
In July last year Rheinmetall announced it would establish a Military Vehicle Centre of Excellence (MILVEHCOE) in Ipswich if it won the multi-billion dollar contract.
“With expertise in heavy vehicle manufacturing and a cluster of defence industry suppliers, as well as first class engineering and mechanical talent, Queensland was always perfectly situated to support this project, a fact recognised by both Rheinmetall and the Australian Government,” Mr O’Brien said.
North Queensland will also benefit with billions of dollars in maintenance support work over the life of the vehicles. Queensland companies won the major share of the Land 400 Phase 2 investment. Over $1.8 billion will be spent in Queensland on the project creating 330 new jobs for the state.
Queensland companies such as NIOA, Penske, G&O Kert, Ferra Engineering, Global Manufacturing Group and Elbit will all receive a boost.
“Land 400 Phase 2 will create around 450 direct jobs in South East Queensland and thousands more across Australia through small and medium enterprises (SMEs) entering Rheinmetall’s global supply chain,” Mr O’Brien said.
Land 400 is the largest acquisition project in the Australian Army’s history with the 8-wheeled BOXER CRV to replace the Army’s retiring Australian Light Armoured Vehicle (ASLAV) fleet.
This investment in new Army capability is a key part of the Federal Government’s commitment to a safe and secure Australia.
Over the 30 year life of the vehicles, Australian industry will deliver two–thirds, or $10.2 billion of the acquisition and sustainment, which will create up to 1,450 jobs right across Australia.
The vehicles will be equipped with high levels of protection, firepower and mobility which will enable sustained operations, varying from peacekeeping to close combat.
The new vehicles will be used at facilities in Puckapunyal, Bandiana, Adelaide, Townsville and Enoggera.
The Federal Government is also spending around $68 million to upgrade facilities in Queensland to cater for the new vehicles.