Saab Australia, a solutions provider for defence and civil security, will receive $22 million from the federal government under the Modern Manufacturing Initiative to build their Sovereign Combat System Collaboration Centre in South Australia.
Supplied through the Collaboration Stream, the funding will help power Australia’s shipbuilding initiative and build on its sovereign combat system capabilities.
“This grant will complement Saab’s investment of $55 million to increase the size of the current Adelaide facility by 80 per cent over an 18-month construction timeframe,” Saab Australia managing director Andy Keough said.
Saab Australia’s Sovereign Combat System Collaboration Centre is a $75 million project that will address critical industry skills shortages, and help Australian SMEs gain access to lucrative national and global defence supply chains.
Key features the new facility will include a Combat Systems school, production and prototyping facilities and system integration and test facilities – all will be available to facilitate and support the growth of SMEs’ product development programs.
“Keeping Australians safe is one of the Morrison government’s highest priorities. Today’s funding from the Modern Manufacturing Initiative comes on top of the billions of dollars the government is investing to build our sovereign manufacturing capability in defence,” minister for Industry, Energy and Emissions Reduction Angus Taylor said.
“Our government knows that strong national security and economic security go hand-in-hand. We want more Australian businesses to contribute to local and international defence supply chains, and more Australian innovation and intellectual property to be contributed to products supplied to the ADF and other markets.”
The project is anticipated to create more than 950 jobs by 2027.
“I was briefed by Saab on this opportunity last year and am delighted that they have secured a grant for this important work,” minister for Defence Industry Melissa Price said.
“We are determined to build our sovereign capability to ensure that we can deliver at home what we need to defend ourselves, when we need it, and this investment will help us achieve that.”
Enhancing a collaborative ecosystem, which further drives innovative commercialisation, manufacturing, technology and increased sovereign capability, Saab’s expansion directly supports the federal government’s Modern Manufacturing Strategy.
Construction is set to start later this year.