Construction has started on Hanwha Defense Australia’s Armoured Vehicle Centre of Excellence at Geelong.
Last Friday, Prime Minister Scott Morrison led the sod-turning for the facility, where the South Korean company will build self-propelled howitzers and armoured ammunition resupply vehicles under a $1 billion defence contract.
Mr Morrison said the project would deliver a major economic boost for the Geelong, with more than 300 jobs to be delivered over its lifespan.
“With the turn of the sod today at Avalon we are keeping our promise, securing Geelong’s rightful place in our country’s advanced manufacturing and defence industry, creating skilled jobs and delivering huge economic benefits for the region,” Mr Morrison said on Friday.
“As construction ramps up it will create up to 100 jobs, and once this cutting edge facility is up and running around 300 locals will be employed at the site.
“Importantly, several local businesses will be engaged along the way to help deliver this critical $1 billion defence project. This includes an Australian-owned Victorian-based construction company that will build this $170 million facility with completion by 2024.
“This project is a clear demonstration of my government’s commitment to securing a strong economy and a strong future for all Australians, with investments in both our economic and national security.”
The turning of the sod comes less than two months after the South Korean company confirmed it would build its facility near Avalon Airport.
It had committed to basing the facility in the City of Greater Geelong when it won the $1 billion contract last December.
The contract will see Hanwha build 30 self-propelled guns and 15 armoured ammunition resupply vehicles used to replenish stocks of artillery shells on missions.
The facility will initially focus on the production the howitzers, and will feature multiple assembly lines, a 1.5 kilometre test track, a deep-water test facility and an obstacle course to ensure the vehicles function as intended prior to delivery.
Hanwha has also planned for the expansion of operations should the government also win another federal government contract.
Hanwha Defense Australia is one of two shortlisted contenders for a multi-billion dollar contract to supply up to 450 infantry fighting vehicles for the Australian Defence Force.
Defence Industry Minister Melissa Price said the self-propelled howitzer contract was significant to Australia’s growing defence industry.
“This project will create hundreds of jobs, with more than 90 per cent of vehicle sustainment to be completed in Australia,” she said.
“The opportunities for our defence industry are significant and will benefit local companies until the late 2040s.
“The big advantage of these highly mobile, hard-hitting weapons is that they can fire, and immediately move, before any enemy can accurately locate them.
“The new guns, mounted on tracks and with heavy armour, offer much better protection to their crews in the face of nuclear, biological, chemical and radiological threats.
“The result is that our troops have a mobile and versatile weapon system that gives them the best possible chance of successfully completing their mission and returning home safely.”
