Businesses and the Victorian government are ramping up pressure on the federal Defence Materials Minister to award a $5 million contract to a company that could provide extra jobs and work for Wodonga.
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BAE Systems Australia is one of two finalists in the running to deliver the LAND 400 Phase 2 project – involving building armed reconnaissance vehicles.
If successful, work to provide parts for the tanks will go to Wodonga’s Parker Hannifin, which could result in a 10 per cent increase in work and an extra five jobs.
Victorian Acting Trade and Investment Minister Ben Carroll continued to sell the state’s bid to Minister Christopher Pyne, announcing the University of Melbourne would be home to the 225 tanks produced.
A memorandum of understanding was signed between BAE and the university, setting the two organisations up to work together at their Fisherman’s Bend sites.
Mr Carroll said if BAE Systems was awarded the LAND 400 contract, it would add close to $1 billion to Victoria’s economy and create up to 2000 manufacturing and supply chain jobs – including in Wodonga.
“Victoria has the proven experience and the skills needed to build these vehicles and keep our troops safe,” he said.
BAE chief executive Gabby Costigan spoke at a defence conference this week, and also talked up the jobs that could be created if the company was awarded the LAND 400 contract.
“If successful on this program, our plan is to not only manufacture armoured vehicles for Australia but to ultimately create a regional hub in Australia for building armoured vehicles,” she said.
“A manufacturing hub in Australia, delivered by Australians.
“And with the benefit of BAE Systems bringing to Australia world leading technology and skills employed in advanced manufacturing centres around the world.”
She said the value generated by the Australian Defence industry needed to be better understood.
“We are today a highly productive industry, employing many thousands of highly-skilled professionals and together we are a growing contributor to our national economy,” Ms Costigan said.
“The investment in a sovereign Australian Defence industry delivers greater value for the tax payer.”
The federal government is expected to make a decision by the end of February.