Defence industry has new weapon in government grants

Defence firms will receive grants worth up to $4.1m as part of a push to move Australia into the top-10 global defence exporters.

Craigs Ballistics CEO James Craig has welcomed a government push to make Australia a major defence supplier. Picture: Russell Shakespeare

Small arms and defence businesses will receive grants worth up to $4.1 million as part of a push to move Australia into the top-10 global defence exporters.

The Defence Global Competitiveness Grant program will offer individual payments of $150,000 to defence industry companies seeking international accredit­ation or procuring capital to ­expand into military and defence markets overseas.

Defence Industry Minister Steven Ciobo told The Australian the $4.1m grants were part of a year-long strategy, established in collaboration with Defence Minister Christopher Pyne, to increase Australia’s prestige in the defence exports world.

“Australia’s defence industry cannot sustain itself on the needs of the ADF alone,” Mr Ciobo said.

“Proudly, every F-35 [jet fighter] in production globally is fitted with parts made in Australia by Australian industry.

“We can and do make the best defence products in the world.

“We need to look beyond our shores … we’ve got the potential to become a powerhouse global ­defence exporter.”

Gold Coast-based business Craig International Ballistics was launched in 1999 in the Craig family garage. It specialises in body ­armour. The business has expanded over the past two decades and now has turnover of more than $20m a year.

Chief executive James Craig said part of that boost had been a massive expansion of his family business’s exports and the support of government grants.

“We’ve gone from exports being 5 per cent to nearly 25 per cent in just the past 18 months,” Mr Craig told The Australian.

“We’ve added about a dozen countries to our customer base in recent times, including Indonesia, Singapore, and the UK.”

Craig International Ballistics made its mark through body armour contracts with the Australian Army, including a recent deal providing armour protection for their new CH-47F Chinook heavy-lift transport helicopters.

Mr Craig said Australian defence businesses needed to expand into foreign markets to survive. He said government support was key.

“The work the government has done is fantastic,” he said.

“There’s the Defence Innovation Hub, which provides support for businesses. And there’s the Austrade grant, which helps re­imburses exporters’ travel costs.

“The defence industry can be a bit of a yoyo. So expanding our customers overseas is important and it means we’re now looking at putting on more staff.”