$800m fighter jet project yet to take off after defence cuts

By John Van Klaveren
ANOTHER major project for the region has failed to fire, blocking further Geelong jobs growth.
A site for a proposed aero structures manufacturing facility promising 300 jobs remains unchosen, a state government spokesperson confirmed.
The Independent reported in March last year that Marand Precision Engineering was investigating Avalon for the facility.
The facility would service a defence contract worth up to $800 million to build tail assemblies for global Joint Strike Fighter (JSF) aircraft. But Federal Government announced $4 billion in defence cuts this week, including delaying Australia’s purchase of its first batch of 12 JSF aircraft by two years.
Defence Minister Stephen Smith last year decided to hold back on the overall order for 58 fighters.
Delays and cost overruns have mired the JSF program, under the direction of giant American aerospace company Lockheed Martin.
Another Melbourne engineering company, Production Parts, went into receivership last year despite holding a $40 million JSF contract.
Victorian Industry Minister Richard Dalla Riva said last year that Marand would spend $50 million on its 10,000-square-metre Geelong facility.
The new facility would provide a “major economic and jobs boost for Geelong”, he said.
The delay to the project follows last week’s State Government announcement that a proposed 1000-job car shipping facility would stay in Melbourne instead of relocating to Geelong.
The Government spokesperson said the JSF project could “expect accelerated progress” in the next few months.
The first scheduled deliveries at the end of 2013 were “on track”.