Joint media release – Prime Minister, Minister for Defence Industry and Minister for Defence – New Vehicles to protect our troops and create 1450 jobs
The Turnbull Government will create up to 1450 jobs across Australia through the purchase of a fleet of new Combat Reconnaissance Vehicles for the Australian Defence Force.
The world-class vehicles will be manufactured and delivered by Australian workers, using Australian steel, under a contract with German contractor Rheinmetall.
The 211 vehicles will provide improved safety to Australian soldiers on deployment and on exercises around the world. They will boost mobility and firepower on the battlefield in the decades ahead.
The decision to select Rheinmetall is the result of a comprehensive three-year tender and rigorous testing process, which assessed its Boxer CRV as the most capable vehicle for the Australian Defence Force.
The CRVs will undertake a range of missions, from regional stability and peacekeeping through to high-threat operations.
The Government will spend $5.2 billion to acquire the 211 vehicles, which will replace the Army’s current ageing Australian Light Armoured Vehicle fleet.
Over the 30-year life of the vehicles, Australian industry will secure two thirds, or $10.2 billion, of the total investment in acquiring and maintaining the fleet, creating up to 1450 jobs right across Australia.
Rheinmetall is working with more than 40 companies across Australia, ensuring the delivery of these vehicles will be a national enterprise.
This project will create jobs across Australia, including 330 in Queensland, 170 in Victoria and 140 in New South Wales during acquisition.
It presents an exciting opportunity for Australian industry to play a vital role in delivering leading-edge capability and technology to Australia’s Army.
The Turnbull Government is also spending about $235 million to upgrade facilities in Puckapunyal and Bandiana in Victoria, Adelaide, and Townsville and Enoggera in Queensland, where the vehicles will be used.
The new CRVs are part of the Turnbull Government’s $200 billion investment in our defence capability over the next decade to ensure the Australian Defence Force is equipped to succeed in our challenging strategic environment.
The Government is determined to leverage this investment to build a sovereign and sustainable defence industrial base as a national strategic asset.
Our investment decisions in defence capability are complemented by a comprehensive defence industry policy agenda to support a robust, resilient and internationally competitive defence industry, which will support jobs and investment across the country.
The Government would like to congratulate Rheinmetall and BAE Systems Australia for the quality of their tenders. They were great examples of international companies teaming with Australian industry.