North Albury company Milspec a winner after German giant chosen to make new Army vehicles

Good deal: Milspec general manager Neil Morrison and Rheinmetall vice president of procurement Reiner Ley with alternators made at the North Albury factory.
Good deal: Milspec general manager Neil Morrison and Rheinmetall vice president of procurement Reiner Ley with alternators made at the North Albury factory.

AN alternator made by a North Albury firm could be in army vehicles across the world due to a German company scoring a contract.

Milspec Manufacturing is banking on up to 20 new jobs after the federal government approved Rheinmetall  making 211 combat reconnaissance vehicles for the army.

Wednesday’s Land 400 decision will also result in $22.5 million being invested at Bandiana’s army base to cater for the vehicles.

Milspec general manager Neil Morrison said the government’s decision to opt for Rheinmetall over rival BAE Systems Australia opened up the door to his company’s alternator being used in vehicles supplied to other forces such as the British army.

“That’s what is great about today it’s another step closer to Rheinmetall saying ‘we want Milspec’s alternator on our vehicles across the planet’,” Mr Morrison said.

He said under the Land 400 deal Milspec expected Rheinmetall to award various subcontracts for it to supply electrical equipment for the vehicles which will be made in Queensland.

“Rheinmetall have said to me this morning that Milspec will be a major part of the contract,” Mr Morrison said.

“If we win the alternator supply for the Boxer vehicle and some of the electrical mechanical subsystems we could easily see 10 to 20 people employed.”

They would be electrical and magnetic engineers.

BAE’s failure is bad news for Wodonga’s Parker Hannifin company which would have made parts for the vehicles if it had been successful.

Member for Indi Cathy McGowan, who visited Parker Hannifin last month, was disappointed.

“However I will continue to work with manufacturers in Indi to support them in promoting their skilled and experienced workforces in realising projects for the Australian Defence Force,” Ms McGowan said.

Member for Farrer Sussan Ley was positive.

“Milspec is an important beneficiary from the agreement, hopefully for many years to come, and that’s on top of the extra investment we are planning for training facilities at Bandiana - all up, this a pretty good outcome for Albury-Wodonga’s economy,” Ms Ley said.