THE Defence Minister has ensured 640 jobs, tied to the making of ammunition and explosives, will remain at Mulwala and Benalla.
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Christopher Pyne said on Tuesday the federal government would enter a new contract with Thales Australia which operates munitions factories in both centres.
"With both facilities employing over 640 highly-skilled workers, this announcement provides certainty for workers that both factories will remain open for the long term", he said.
"Under the existing contract, employment across the Benalla and Mulwala sites has increased by over 80 employees in 2017.
"The Thales Australia supply chain includes 130 local small-to-medium enterprises, providing a wide range of goods and services to the Benalla and Mulwala sites.
"The negotiations with Thales will see a new strategic arrangement for the management and operation of the factories, improving price competitiveness and increasing export potential for Australian-manufactured ammunition and explosive products.
"This long-term, performance-based arrangement will provide a greater degree of certainty for Thales as the principal tenant and operator of the facilities and will enable seamless transition from the current contract when it expires in mid-2020.”
Benalla mayor Don Firth lauded Mr Pyne for having a long lead-time.
“I would congratulate the minister for making this announcement nice and early, so we don’t go through those worrying times that we’ve had the last few contract times for renewal,” he said.
The most recent contract begin in 2015 and Cr Firth said he would like the next agreement to be longer.
“Ten years, we would love to see something like that,” he said.
Thales Australia vice president strategy Gary Dawson said the contract period would be subject to negotiations.
He said the 80 extra jobs last year had been generated by increased domestic demand and rising exports.
Munitions made at the plants are sold to 17 countries including the US, Germany, Britain, France, New Zealand and Switzerland