Armoured military vehicles will soon be manufactured at a new state-of-the-art facility near Avalon Airport.
South Korean company Hanwha Defense Australia on Wednesday announced it would construct a $170 million facility to manufacture self-propelled howitzers and armoured ammunition resupply vehicles for the Australian Army.
The company was awarded the $1.3 billion contract to supply 30 howitzers, which are similar to tanks, and 15 ammunition resupply vehicles by the federal government in December last year.
Hanwha Defense Australia had committed to basing its manufacturing operation within the City of Greater Geelong.
Hanwha Defense Australia managing director Richard Cho said construction of the 32,000 square metre facility will start by June and take two years to complete.
“The selection of this site in a strategic growth corridor of Victoria is a very significant step in further establishing Hanwha’s defence business in this country,” Mr Cho said.
“We will build a modern facility here in Victoria to manufacture armoured vehicles and utilise the skilled and experienced workforce available to us in Geelong.
“Our facility will be a genuine centre of excellence, one that we can expand and adapt to fulfil different projects across different domains in the future.
“Hanwha Defense Australia is proud to be contracted by the Commonwealth to supply locally manufactured equipment to the Australian Defence Force.
“With Australia’s close proximity to Republic of Korea, and the strong bilateral relationship between the two countries, I think it is likely Hanwha’s Australian facility will also become an important secondary line of supply back to South Korea. It may also help Hanwha fulfil contracts in other parts of the world.”
Mr Cho said design work on Hanwha’s new specialist armoured vehicle manufacturing plant had been underway for some time and was now in its final stages.
The facility will initially focus on the production of self-propelled howitzers, but the company has also planned for the expansion of operations should Hanwha 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.
Along with multiple assembly lines, Hanwha’s plant will feature 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.
Mr Cho said provisions had also been made for Hanwha’s Australian industry partners to co-locate on the new site as necessary to streamline the manufacturing process.
The company has yet to appoint a company to build the facility, but Mr Cho said five Victorian-based companies had been shortlisted in the ongoing tender process.
It is expected the facility will create 100 construction jobs in the region.
“Hanwha will draw on Greater Geelong’s highly skilled and experienced workforce to deliver this project,” Defence Industry Minister Melissa Price said.
“About 100 jobs are expected to be created during the two-year, $170 million construction of the armoured vehicle centre of excellence.
“It is great news for the Geelong region economy that the $1 billion program will support at least 300 jobs during its lifespan.”
The 20 hectare Avalon Airport site, owned by Linfox, was one of 10 potential sites considered for the facility.
It was chosen based on planning and zoning requirements, transport availability, engineering, advanced manufacturing capability, environmental and heritage assessments and the potential for future expansion.
Victoria senator Sarah Henderson said Avalon Airport was an ideal location for the armoured vehicle centre of excellence.
“Avalon Airport, complete with its international terminal which the Morrison Government helped build, is a wonderful asset for our region and will make a first-class home for the Howitzer defence project,” she said.
“Geelong is set to become one of Australia’s most important defence manufacturing centres. It is expected that other defence industry suppliers will consider re-locating to the Geelong region so the opportunities for future growth are enormous.”
Lara MP John Eren said the announcement built on Geelong’s reputation as a manufacturing hub.
“The development of an elite defence production facility cements Geelong’s reputation as a manufacturing hub, bringing hundreds of highly skilled jobs to the region,” he said.
In January 2021, Hanwha Defense Australia and the state government signed a memorandum of understanding to formalise a long-term partnership to support the establishment of Hanwha’s defence manufacturing operations in the state.
The state government estimates more than 1000 jobs would be created in the Geelong region over the next 12 years and an estimated $5.7 billion would be added to Victoria’s economy if the company won the infantry fighting vehicle contract.
“We’re backing Hanwha to make the Geelong region its home because we know it will grow the economy for years to come,” Industry Support and Recovery Minister Martin Pakula said.
