Hanwha Avalon defence hub: 11 local firms awarded $800k funding

Local manufacturers are racing to secure their slice of Victoria's largest-ever defence contract, with $800,000 in government grants boosting their capabilities.

Victorian Industry and Advanced Manufacturing Minister Colin Brooks (right) gets a tour of Hanwha's Avalon headquarters on Monday. Picture: Supplied.

Companies hoping to capitalise on Hanwha’s multibillion-dollar defence projects have been given a helping hand by the state government.

Representatives from 11 companies attended the supply chain uplift program event on Monday morning at Hanwha’s $170m Avalon headquarters, where the state’s Industry and Advanced Manufacturing Minister Colin Brooks collectively awarded them funding of more than $800,000.

It was the fifth round of funding under a program that sees companies match government grants that are capped at $100,000.

The money helps manufacturers undertake projects that will make them capable of becoming an accredited Australian Army supplier.

Projects include systems or facility upgrades, obtaining necessary industry accreditations, and further research and product development programs.

Companies awarded funding on Monday were Blueroom Simulations, EnyGy, Lunar Outpost, R&I Instrument & Gear Co., Ribcraft Marine, Ronson Gears, Skills Leap Australia, Stahl Metall, Total Precision, TRJ Engineering, and Vokke.

Attendees toured Hanwha’s Avalon facility. Picture: Supplied.

Hanwha has been contracted by the federal government to deliver 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles – collectively termed the Huntsman family of vehicles.

The Korean defence giant is set to spend a further $60m at the Avalon site for an expansion that gives it the capacity to produce 129 Redback infantry fighting vehicles as part of the government’s $7bn LAND 400 Phase 3 project.

These programs are expected create more than 1000 direct jobs and hundreds more across the 2500 businesses in Victoria’s defence supply chain.

“We’ve set out a vision for Victoria to be a defence and aerospace powerhouse – and we’re backing our industry to grow and thrive,” Mr Brooks said.

“The supply chain uplift program gives Victorian manufacturers the best shot at winning substantial defence contracts, helping to create jobs and boost the economy.”

Representatives from the 11 companies who received funding via the state government’s supply chain uplift program at Avalon on Monday. Picture: Supplied.

Knoxfield-based Stahl Metall will use its funding to acquire advanced manufacturing equipment that will help the business improve product development and prototypes to seek further defence contracts.

“This funding will help us scale our operations and strengthen our ability to support key programs like LAND 400 and LAND 8116,” managing director Anton Fonseka said.

“It also reaffirms the importance of building a sovereign and resilient supply chain in Victoria that can compete globally and deliver lasting economic and strategic value.”

Hanwha Defence Australia chief executive Ben Hudson said described the government funding as “excellent ongoing investment”.

“From capital investment to defence industry security program accreditation, it’s great to see SMEs investing to make sure they are ready to do business with us in current and future defence programs,” he said.

Lara MP Ella George said the region played a key role in Victoria’s defence industry.

Originally published as Hanwha Avalon defence hub: 11 local firms awarded $800k funding