Victoria is a step closer to securing a multi-billion dollar military vehicle contract that would create thousands of jobs in local manufacturing.
Premier Daniel Andrews and minister for Industry and Employment Wade Noonan visited the General Motors Holden site at Fishermans Bend on Tuesday to announce that Victoria had been selected as the preferred state by BAE Systems Australia to build 225 new Combat Reconnaissance Vehicles.
The Andrews Labor Government has signed a Heads of Agreement with BAE Systems to build the state-of-the-art vehicles at the former Holden site at Fishermans Bend, should it win the contract for the LAND 400 Phase Two project.
A final decision on which state is awarded the contract rests with the Turnbull Government.
“Victoria is the traditional home of vehicle manufacturing, and this project would create thousands of jobs at a time when our automotive sector is in transition,” said state Premier Daniel Andrews.
“Our message to Malcolm Turnbull is simple – bring this work to Victoria. We have the workforce, the track record and the supply chain to get it done.”
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The LAND 400 Phase Two project is worth around $5 billion and would create more than 2,000 manufacturing and supply chain jobs in Victoria.
Victorian defence companies would get a large share of the work, with BAE Systems agreeing to partner with Marand, MOOG Australia, Motec, AME Systems, RUAG Australia, DVR Engineering and APV to build vehicle components.
The new fleet of vehicles will replace the current Australian Light Armoured Vehicle fleet. Victoria’s defence sector is worth $8 billion to the local economy every year, and is made up of about 20,000 people and 400 businesses.
“Victoria’s automotive workers deserve certainty at a time when local car manufacturing is coming to an end,” said minister for Industry and Employment Wade Noonan.
“This project is the perfect opportunity to harness our highly-skilled manufacturing workforce and build the nextgeneration of combat vehicles that will help keep our troops safe.”
Victoria has historically design, development and manufactures military vehicles for Australian and international customers – including the Bushmaster and Hawkei vehicles, which are manufactured at Thales in Bendigo.