EOS wins $410m weapons contract, creates defence jobs

Image: EOS

Aerospace and defence technology manufacturer Electro Optic Systems (EOS) has won a $410 million contract to supply its new R-400S-Mk2 remote weapons systems to an overseas customer.

The new weapon system was initiated in 2005 under a US Army contract to develop next-generation arms.

After seven years of development and four years of testing around the world in harsh environments, the new system entered production in 2015.

“This innovative technology for the first time allows 30mm cannon systems to be deployed with unprecedented accuracy on light vehicles, significantly enhancing lethality and protection without compromising mobility, and at low cost,” said Dr Ben Greene, CEO for EOS.

All $600 million of new contracts are deliverable in monthly shipments from 2018 to 2022 and follow-on awards for additional equipment, spare parts, servicing and support are expected.

EOS is currently negotiating contracts with other customers who have completed their tendering process and already selected EOS.

The contract was announced at the opening of EOS’ new production facility in Canberra, which will create an initial 110 jobs and is set to rise to 200 jobs by 2020.

The facility will be EOS’ defence products development centre as well as a production support facility for current contracts.

“I am pleased that the opening of EOS’ new facility today goes hand-in-hand with supporting 110 Australian jobs through recently awarded contracts, which is set to rise to 200 jobs by 2020,” said Defence Industry minister Christopher Pyne.

“This facility will also help EOS continue their fantastic record of competing internationally and winning significant export opportunities.

A new report, The Defence Export Strategy, was released on Monday and provides the industry with support to identify and realise export opportunities.

The Strategy includes a range of initiatives, including a new Australian Defence Export Office, and an additional $20 million of financial support annually from July 2018.

“When meeting with my counterparts overseas, I am a strong vocal advocate for Australian capability including EOS’ remote weapons systems,” Pyne said.

“EOS’ success is a demonstration of what can be achieved when Government and industry work together and our Defence Export Strategy will further realise this.”