Jobs boom could be headed to Victoria

The competition for a lucrative defence manufacturing contract has been likened to State of Origin, and could create thousands of jobs.

Head of Hanwha Australia, Richard Cho, and Industry Support Minister Martin Pakula. Picture: Mark Wilson

Thousands of new manufacturing jobs building high-class military vehicles could make their way to Victoria under a Memorandum of Understanding signed by the state government. 

Industry Support and Recovery Minister Martin Pakula on Tuesday signed a new MoU agreement with South Korean company Hanwha.

It details plans for a long-term partnership which could include the building of 30 self-propelled Howitzers and 15 armoured resupply vehicles in Geelong.

The company is also one of two final bidders to build the new LAND 400 Phase 3 vehicle for the Commonwealth Government.

A final decision on the major contract is expected to be made within the year and would contribute $5.7 billion to the Victorian economy and 1000 jobs if awarded to Hanwha.

But the competing bid, by Rheinmetall Defence Australia, has been backed by the Queensland government and could see this work head north instead.

“It’s a really important piece of military equipment and the Victorian government is working closely with Hanwha to give them the best chance of succeeding in that process,” Mr Pakula said.

“It’s like State of Origin, but with Victoria rather than New South Wales. 

“(Defence) is already an area where we’ve got substantial capabilities,” Mr Pakula said.

“The range of companies working in defence industries is staggering, and we’re backing them to grow further.”

Its believed there are 6300 small and medium businesses in the state working in manufacturing vehicles, aerospace component, munitions and cyber security.

The MoU also details opportunities for Hanwha to invest in other sectors of the Victorian economy outside of the defence.