What Hanwha’s $7bn defence deal means for Geelong

Hundreds of jobs could be created and thousands more supported under amid news one of Australia’s largest defence acquisition projects will be built in the Geelong region.

Richard Cho, Head of Hanwha Australia Picture: Mark Wilson

Up to 600 jobs could be created after the federal government announced it would build a multi-billion dollar defence project in Geelong.

The federal government announced on Thursday Hanwha Defense Australia had won the multi-billion dollar defence contract to build 129 “redback” infantry fighting vehicles for the Australian Army.

“Our decision to build the Redback infantry fighting vehicles in Australia will support up to 600 direct jobs and a further 2,000 or so jobs in the Australian industry supply chain,” Defence Industry Minister Pat Conroy said on Thursday morning.

Hanwha Defense Australia Redback Infantry Fighting Vehicles conduct a live fire demonstration during Land 400 Phase 3 user evaluation trials.

The Land 400 project’s third phase is valued at $5-7bn, making it one of the largest acquisition projects in the Australian Army’s history.

Geelong Manufacturing Council chief executive Jennifer Conley said the news meant “fantastic” things for local supply chain growth.

“For every manufacturing job created, there are a further eight jobs created in the community,” she said.

“It will increase our technology capability, and nurture skills growth.”

The cutting-edge vehicles will be built at Hanwha’s $170m facility, currently under construction at Avalon.

Sentiments were echoed by Committee For Geelong chief executive Michael Johnston, who called for the investment of a direct train to Avalon to better support local industry.

“Hanwha has backed Geelong through this process, and as a city we need to continue to support what will be a significant employer,” he said.

“This adds more weight to the need for improved transport infrastructure and a dedicated train station at Avalon.”

The first vehicles are expected in 2027, two years earlier than originally planned.

“We are also committed to supporting Australian defence industry so we can make more of the critical defence equipment we need in this country rather than relying on overseas suppliers,” Mr Conroy said.

Redback infantry fighting vehicles will replace the army’s M113 armoured personnel carriers, which have been in use since 1964.

The cutting-edge vehicles will be built alongside 30 self-propelled howitzers at the facility in Avalon’s industrial park.

“We are excited for the next phase of this program that will see HDA and Australian industry

deliver a world class IFV to the Australian Army,” HDA managing director Richard Cho said.

Acting Prime Minister, Richard Marles in Canberra. Picture: NCA NewsWire / Martin Ollman

“The selection of the Redback for the Australian Army is an exciting milestone not just for

soldiers, who will have an IFV that was specifically designed and built for them, as it also cements the closer ties between Australia and the Republic of Korea.”

Acting Prime Minister and Member for Corio Richard Marles, who previously recused himself from the decision making process said the announcement was “significant” for local industry.

“Geelong has a long history in manufacturing cars with Ford, and now we’re taking the next step in terms of manufacturing infantry fighting vehicles, and this is going to be hugely transformative for the Geelong region and for Australian defence industry,” he said.

Member for Corangamite Libby Coker said the decision was good for both defence and local jobs.

“Manufacturing has played such an important role in the growth of our region, bringing both economic opportunity and employment – this project will strengthen that,” she said.

Geelong-based Victorian Liberal Senator Sarah Henderson said the decision was a “major win” for local manufacturing jobs and the regional economy.

“This also demonstrates why I fought so hard for such a long time, on behalf of the Coalition, to bring major defence industry contracts to Geelong,” she said.

Originally published as What Hanwha’s $7bn defence deal means for Geelong