Australia signs major deal to export $1bn worth of hi-tech armoured vehicles

A major deal worth $1 billion has been signed by Australia in what is being labelled the nation’s biggest defence export.

A deal to export Queensland-made hi-tech armoured vehicles has been signed in what is being hailed as Australia’s biggest defence export.

German firm Rheinmetall will export more than 100 Boxer heavy weapon carrier vehicles manufactured at it’s Military Vehicle Centre of Excellence facility in Ipswich.

The agreement, set to be worth more than $1bn, was signed by Defence Industry Minister Pat Conroy on Thursday after the German parliament signed off on the plan overnight.

“A strong defence industry is crucial to protecting Australians and their interests,” Mr Conroy said.

The deal will be signed on Thursday. Picture: CPL Nicole Dorrett

Rheinmetall began making the combat reconnaissance vehicle last March, under a contract to supply 211 vehicles to the Australian military.

The additional 100 Brisbane-made warfighting machines will be sold to the German Army from 2025.

It’s understood it would sustain more than 600 jobs in the Sunshine State alone.

Details of the plan were first announced by Prime Minister Anthony Albanese while on a visit to Berlin last year when he unveiled an in-principle agreement for the deal.

But just weeks later the government delivered a blow to Rheinmetall by awarding a more lucrative contract to replace 129 Australia’s Vietnam-era infantry fighting vehicles to a South Korean rival.

The vehicles will be sent to the German army from 2025.

Despite rumblings that it would put the Boxer heavy weapon carrier vehicles deal in doubt, Germany’s parliament signed off on the proposal overnight.

In a statement, Defence Minister Richard Marles said it highlighted the “strengthening of the relationship” between Australia and Germany.

Mr Albanese said the deal secures well-paid jobs in Queensland and across the country.

“This significant announcement is worth over $1 billion to the Australian economy in the production and supply of these vehicles,” he said.

“The agreement will boost Australia’s sovereign defence industry, secure local jobs and contribute to Australia’s economic growth.”