Avalon’s $170m Hanwha defence hub takes shape

Work has started on Hanwha’s $170m defence hub at Avalon, despite major cuts to its key project.

General Andrew Bottrel and Brigadier Shaun at the turning of the sod for the Hanwha howitzer plant in Avalon. Picture: Alison Wynd

Work has started on Hanwha’s $170m Armoured Vehicle Centre of Excellence at Avalon, despite a key part of the company’s major project being scrapped this week.

Victorian Minister for Manufacturing Sovereignty Ben Caroll visited the Avalon airport based site on Wednesday to officially announce previously pledged supply chain grants.

Once complete, the site will produce the company’s 30 self-propelled howitzers for the Commonwealth’s Land 8116 program, creating more than 300 new highly skilled jobs in design, engineering and advanced manufacturing.

Before this week that project, promised by former Prime Minister Scott Morrison, was expected to cost $2bn, include two phases and deliver 60 howitzers.

But Prime Minister Anthony Albanese and Defence Minister Richard Marles announced the second phase of the project would be scrapped after the government’s landmark defence review found the weapons would not provide enough range or lethality.

Hanwha, a Korean based defence giant is one of two final bidders for the Commonwealth’s Land 400 Phase 3 program, which has also been scaled back from 450 infantry fighting vehicles to just 129.

The move has been slammed by Victoria Liberal Senator Sarah Henderson, who said the cuts created “profound uncertainty” for defence industry and Australia’s sovereign manufacturing capability.

A spokesperson for Hanwha Defence Australia (HDA) said: “While we are disappointed in the cancellation of the second phase of Land 8116, and the cut in numbers for LAND 400 Phase 3, we are pleased LAND 400 Phase 3 is continuing.”

“We are awaiting further guidance from the Commonwealth on the path ahead for this project,” the spokesperson said.

“HDA will continue working with our partners on both projects.”

“There is no change to LAND 8116 Phase 1 and it continues on its current path.”

During his visit, Mr Carroll said the state government’s supply chain program aimed to support local companies become part of Hanwha’s supply chain, by helping them meet specific technological, business system and accreditation requirements.

Nearly $200,000 will be awarded to five companies that specialise in land systems defence, including Campbellfield based APV Corporation, which will develop a specialised military seatbelt, and Waurn Ponds’ Hannagan Solutions, which will develop custom textiles to protect and camouflage military vehicles and soldiers. 

Other companies benefiting from the grants include Australian Precision Technologies and Redline Engineering with both set to strengthen their cyber security systems, while Diamond Defence will introduce a new quality

management system to achieve a required industry certification.

“We want to see more Victorian-made products used by global defence firms like Hanwha, which is why we’re helping small and medium businesses to compete for and win major contracts,” Mr Carroll said.

Originally published as Avalon’s $170m Hanwha defence hub takes shape