Tomago engineering firm Varley wins $41m defence contract

The Federal Government says the contract, to upgrade the country’s “deployable infrastructure” for wars and disaster relief, will create 80 jobs at Tomago.

Hunter engineering firm Varley has won a $41m defence contract to upgrade the country’s “deployable infrastructure” for wars and disaster relief in an agreement which will create 80 new jobs.

Defence Industry minister Melissa Price will make the announcement at Varley’s facility at Tomago on Monday as part of a wider $89m investment into the defence force’s “deployable infrastructure capability” that would also create another 25 jobs in Queensland.

The Government’s investment will include upgrades to power generation, hygiene and essential catering, and the acquisition of new kennels for military working dogs.

Defence Industry minister Melissa Price will announce the $41m contract with Varley at the firm’s Tomago headquarters on Monday.

“This contract with Varley is critical to the delivery of these key systems to support our ADF,” Ms Price said.

“To see 80 new jobs in the Hunter region, specifically from this initiative, is a profound confirmation of the direction we have been taking in regards to a robust, self-reliant defence industry – right here in our own backyard.

“The acquisition and sustainment of these systems will create significant work for Australian businesses across the nation.

“I’m proud of the positive impacts that this $41 million contract and the wider $89 million acquisition investment in Australia’s defence capability is bringing to Australian industry.

“This investment highlights the broad and varied support that Australian industry can provide and guarantees the development of key industries in Australia into the future.”

Defence minister Peter Dutton said the investment would enhance the defence force’s ability “to deploy rapidly on a wide range of operations, as well as humanitarian assistance and disaster relief efforts, both domestically and internationally”.

Prime Minister Scott Morrison during a tour of Varley’s operations at Tomago in 2020. Picture: NCA NewsWire / Joel Black

“We are committed to protecting our nation by equipping the ADF with modern capabilities to best meet future challenges,” Mr Dutton said.

“Sovereign defence manufacturing is a critical part of the Government’s commitment to keeping our region safe, while protecting our national and strategic interests in a rapidly changing global environment.”

Liberal candidate for Paterson Brooke Vitnell said “Williamtown and surrounds was a vital cog in the defence and security of our nation.”

“It is crucial we build a stronger and more capable defence force that can deploy and successfully project our military power so we can better protect and deter action against our national interests and the continued Liberal National Government investment in our region does just that.,” Ms Vitnell said.