Where South Korean conglomerate Hanwha will manufacture howitzer guns

A $170 million facility to manufacture military guns at Avalon Airport will have flow on effects for tertiary research and jobs, industry sources say.

A $170 million facility to manufacture military guns at Avalon Airport will have flow on effects for tertiary research and jobs, industry sources says.

Hanwha Defense Australia’s will manufacture self-propelled howitzer guns and armoured ammunition resupply vehicles at a 20ha site from 2024 under a $1.3bn defence contract.

Deakin University said the production facility would provide opportunities for research in intelligent systems and innovation.

Deputy Vice-Chancellor for Research Julie Owens said Hanwha was working closely with Deakin’s Institute for Intelligent Systems Research and Innovation (IISRI) based at Waurn Ponds.

“Research and education are equally important in developing local capability, and we are looking forward to the opportunities deep and significant partnerships like this will create for many years to come,” Professor Owens said.

She said Hanwha’s reputation as an industry leader in smart systems and technologies would strengthen Geelong as a national centre of advanced manufacturing.

Construction of the Avalon facility — to include multiple assembly lines, a 1500m test track, deep water testing area and space for Australian defence industry companies to set up a base to streamline manufacturing and maximise export opportunities — will begin by June.

Hanwha's K9 howtizer. A similar model will be manufactured at Avalon

The state government said Hanwha’s decision to set up in Geelong would see businesses generate $200 million of flow-on investment.

Industry Support and Recovery Minister Martin Pakula said: “We’re backing Hanwha to make the Geelong region its home because we know it will grow the economy for years to come.”

Deakin University Vice-Chancellor Iain Martin said the manufacturing hub would develop high-tech jobs.

Last year Deakin and Hanwha agreed to collaborate to drive advancement in modelling and simulation and machine learning applications.

Australian defence veteran owned project management consultant Conscia worked with Hanwha to select the Avalon site, design the facility and open a tender process to find a builder.

Hanwha Defense Australia manufacturing facility to be built at Avalon

More than 10 potential sites were considered and a shortlist of three was established before the Avalon site was chosen.

Hanwha, Conscia, the Victorian Department of Jobs, Precincts and Regions and Invest Victoria have all been involved in the selection process.

Hanwha Australia’s parent company is Fortune 500 listed and South Korean owned.

FIRST LOOK: GEELONG HOME OF MILITARY GUNS REVEALED

A $170 million facility to manufacture military guns will be built by a South Korean conglomerate at the Avalon Airport precinct under a $1.3 billion defence contract.

Hanwha Defense Australia will manufacture self-propelled howitzer guns and armoured ammunition resupply vehicles at a 20ha Avalon site after it won a federal government contract last year.

To meet its obligation it is expected to start construction of a 32,000sq m production facility by June.

A self-propelled howitzer

Hanwha Defense Australia managing director Richard Cho said the company wanted to use skills and experience available in Geelong.

“With Australia’s close proximity to Republic of Korea, and the strong bilateral relationship between the two countries, I think it is likely Hanwha’s Australian facility (at Avalon) will also become an important secondary line of supply back to South Korea,” Mr Cho said.

“It may also help Hanwha fulfil contracts in other parts of the world.

“Our facility will be a genuine centre of excellence, one that we can expand and adapt to fulfil different projects across different domains in the future.”

Hanwha is one of two shortlisted companies vying for an Australian Defence Force contract for up to 450 infantry fighting vehicles worth between $18 and $27bn.

The company said it could rapidly expand the Avalon facility should it win that contract.

The Avalon facility will include multiple assembly lines, a 1500m test track, deep water testing area and an obstacle course to test capability.

The facility will also include space for Australian defence industry companies to base their operations to streamline manufacturing and maximise export opportunities, the federal government said.

Hanwha Defense Australia manufacturing facility to be built at Avalon

It is estimated about 100 workers will be needed during construction, and 300 workers will be employed during the howitzer project.

Defence Industry Minister Melissa Price said the project showed the Morrison Government’s commitment to supporting jobs.

“Hanwha will draw on Greater Geelong’s highly skilled and experienced workforce to deliver this project,” Minister Price said.

Hanwha will lease the Avalon site from the trucking billionaire Lindsay Fox who has a long-term lease of the Avalon Airport precinct.

Hanwha's AS9 howitzer. Picture: Hanwha Defense Australia

Richard Cho Head of Hanwha Australia Picture: Mark Wilson

Five Australian-owned companies are shortlisted to build the Hanwha facility that is expected to take 24 months to complete.

Victorian Senator Sarah Henderson said the Hanwha facility at Avalon was an “absolute game-changer” for the local economy and for Victoria.

“With five Australian-owned companies currently shortlisted to construct the armoured vehicle centre of excellence, a sovereign national asset for military capability manufacturing, this will deliver an immediate jobs boom for our region and for Victoria,” Senator Henderson said.

“Geelong is set to become one of Australia’s most important defence manufacturing centres. It is expected that other defence industry suppliers will consider re-locating to the Geelong region so the opportunities for future growth are enormous.”

Originally published as Where South Korean conglomerate Hanwha will manufacture howitzer guns