Defence opportunities for Victoria from $160 million Chemring contract
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29 June 2009
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Victoria’s Minister for Industry and Trade, Martin Pakula, today met with the CEO of UK defence giant Chemring in London to discuss opportunities arising from its ten year, $160 million contract with the Australian Defence Force (ADF).
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Chemring is investing $18 million in a new manufacturing plant and equipment at its facility in Lara, Victoria, in order to deliver the contract.
In England for the G’day UK initiative - a week-long series of events positioning Australia as an innovative and thriving economy and a good place to live, work, invest, raise a family or visit on holiday – Minister Pakula followed up on opportunities with Chemring.
“This project is a win for Chemring and a win for Victoria. The plant upgrade work has already commenced at the Lara facility and is expected to be completed by mid 2010.
“The new facility also delivers the additional benefit of creating 40 new skilled jobs during a time of global economic uncertainty,” Minister Pakula said.
Chemring is the world’s leading producer of expendable decoy countermeasures for protecting air, sea and land platforms against guided missile threats.
The $160 million contract with the ADF was announced by Australian Prime Minister Kevin Rudd and Victorian Premier John Brumby in December 2008.
Dr David Price, Chief Executive of Chemring, said the contract established Chemring as the principal supplier of countermeasures and pyrotechnics to the Australian armed forces.
“The new state-of-the-art manufacturing facility will allow Chemring Australia to meet Australian operational requirements and will provide additional manufacturing capacity to satisfy the increasing demands of our global export customers,” Dr Price said.
The Lara plant will deliver leading edge technology to manufacture pyrotechnics and air-expendable stores such as flares and chaff, which are deployed from military aircraft.
“Once operational, Chemring’s new plant will greatly increase Victoria’s ability to win further export work and to bid for future work on the lucrative Joint Strike Fighter project,” Minister Pakula said.
There is also potential for Chemring Australia to benefit from co-operation with its sister plant in Salisbury, Wiltshire, which is also due to commence operation in 2010.
The Victorian Government is supporting the new Lara facility with a contribution of $1.8 million, which has been delivered through the Geelong Investment and Innovation Fund.
Minister Pakula said the Defence industry is very important to Victoria, providing over 9,000 jobs and yielding more than $1.6 billion in defence business per annum.
“Our involvement in projects like Chemring’s new Lara plant is designed to maximise the company’s benefits while delivering on a major Government commitment outlined in our strategic framework - Roadmap for Victoria’s Defence Industries,” Minister Pakula added.
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