Defence company, CEA Technologies signed the first $90 million loan of the Defence Export Facility.
The loans program is designed to enable small defence businesses to scale up to export their products to global markets.
CEA will use the loan to build an engineering and manufacturing facility in their home-city of Canberra. CEA is known for its phased array radars, which have been supplied to the Australian Navy. CEA’s radars are used on ANZAC-class frigates, and will be utilised on the in-development Hunter-class frigates.
With the loan, CEA will employ an extra 200 people.
This loan will ensure CEA has access to the necessary capital, which will allow them to meet the demands of multiple customers and grow their business through research and development at the same time,” said Minister for Trade, Tourism, and Investment, Simon Birmingham.
Part of the federal government’s 2018 Defence Export Strategy, the Defence Export Facility is administered by Export Finance Australia.
Previous recipients of Export Finance Australia’s defence focussed programs have been manufacturers including Varley Group, Air Affairs, A.W. Bell, Quickstep, Birdon, and Ferra Engineering. Each of these businesses utilised the funding from Export Finance Australia to expand their operations to overseas customers and suppliers.
The $90m in loaned funding to CEA aims to grow Australia’s industry through international investment. The Defence Export Strategy encourages the growth of a local defence industry that can support Australia’s defence capabilities while increasing high-end manufacturing jobs.
“This loan is a win, not only for CEA Technologies, but for the many Australian small businesses in their supply chain – it will support the delivery of innovative defence capability now and into the future,” said Minister for Defence Industry, Melissa Price.