South Korean conglomerate wants Geelong companies for $1bn gun project
Hanwha Defence has revealed when Geelong’s enterprises can contribute to the Australian Army’s $1bn howitzer program.
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Geelong region businesses will be given opportunity to tender to contribute to the $1bn howitzer gun project later this year, the company delivering the Australian Defence Force contract at Avalon says.
Hanwha Defence Australia will manufacture 30 self-propelled howitzer guns and 15 resupply vehicles from 2024 at a $170m manufacturing facility at Avalon.
Hanwha’s industrial development manager Millie Keating said companies wanting to manufacture components for the howitzers and resupply vehicles would have an opportunity to bid for work from August.
“Local companies should expect between August and December this year heaps of activity for all the componentry; manifolds, brackets, fabricated parts — interior to the vehicle mostly.
“We are going to continue to look for local opportunities.
“The opportunity isn’t a sugar hit, it is a long-term opportunity for the community.”
The howitzers and ammunition resupply vehicles are due to be operational from 2026-27 while army personnel will be trained on the guns from 2022-23.
Tasmania based manufacturer Elphinstone are contracted to build the turrets and hulls of the howitzer, and Ms Keating said Hanwha wanted to bring those components to Avalon via the Spirit of Tasmania.
Ms Keating said Hanwha had a partnership with Universal Motion Simulation based at Deakin University Waurn Ponds.
“We’re actually taking UMS with us to Korea for the first global user group (for the howitzer project). Just yesterday (Thursday) we did a blast test of a half hull in Israel.”
Head of the land systems division of the Australian Defence Force, Andrew Bottrell, said the howitzer offered protection to gun crews not previously experienced.
“They will provide a level of mobility that is equivalent to our armoured vehicles and therefore be able to maintain that support to the fight and they will be able to deliver an accuracy of firepower that is beyond anything that we can currently do,” Major General Bottrell said.
“It will be a significant step change in offensive firepower and defensive firepower for our armed forces that is well beyond what we currently have.”
Hanwha Defence Australia Managing Director Richard Cho said the Avalon facility was company’s first major manufacturing hub outside the Republic of Korea.
“The ground we break today will open a pathway to enhance Australia’s industrial and defence capability while boosting productivity and prosperity.”
Prime Minister Scott Morrison said Hanwha’s manufacturing would be completed in 2024, and the howitzer contract would require 300 employees across its lifespan.
“This is our promise, and you can see it being delivered right here. This is great for jobs in Victoria. It’s great for jobs in Australia because it builds capability.”
Corangamite candidate’s tweet critical of PM resurfaces
Improving health outcomes, boosting jobs and managing growth will be features of the Liberal plan for Corangamite, federal election candidate Stephanie Asher says.
Ms Asher – asked by Prime Minister Scott Morrison to outline the Corangamite plan during his visit to Avalon on Friday to launch the howitzer manufacturing facility – hinted it would be released in coming weeks.
“There will be more on the local plan in the coming weeks but it’s a very strong local plan focused on jobs and the economy, managing growth – that’s a big issue in our region – making sure that the community has the facilities that they require and also a big investment in health – physical and mental health,” Ms Asher said.
“I understand my community very well. I’m a very active member of my local community and in Corangamite, and I know what their concerns are, I know what they celebrate.
“And when you see my local plan, I think you’ll understand that we actually matched (it).”
On Friday, Ms Asher was quizzed about a 2015 social media post where she appeared critical of Mr Morrison’s leadership.
“Just heard Scott Morrison describe women as a minority group. Lol. Please tell these guys women are 50% of world pop. Australia ldrship. Wow,” a tweet from Ms Asher’s account – referencing the PM’s comments on Syrian refugees at the time – read.
Ms Asher’s account also liked another tweet that described Mr Morrison as a “bastard”.
In a statement on Friday afternoon, Ms Asher said: “My experience since I joined the Liberal Party in 2019, and with Prime Minister Scott Morrison, has been extremely positive regarding women.
“If successful at the election I will advocate strongly on women’s issues”.
Federal deputy Labor leader and Corio MP Richard Marles said: “Over the past 15 months we’ve had the biggest discussion about gender relations in our society in living memory.
“It is really important that we act on that,” he said.
“We need to be acting on that in terms of pay equity, we need to be acting on that in terms of women’s participation in decision making at all levels in our society including at the political level.
“We need to be building a society that is safe for everyone.”
Asked when the federal election would be held Mr Morrison said: “Electoral terms go for three years. Now the last election was on the 18th of May (2019) and the next election will be held about the same time.”
Asked if the government could win the election without winning Corangamite, Mr Morrison deflected and referred to the government’s record and the record of key ministers.
“This election is a choice … what we’ve been able to do to keep our economy strong through this pandemic, and emerged stronger than almost any other advanced country in the world with a strong plan for the future,” Mr Morrison said.
“This election campaign is very important, it’ll give Australians the opportunity to have a good look. They know who we are.
“They know what we’ve achieved. They know what our plans are.”
Asked if he’d be back in the Geelong region during the election campaign, Mr Morrison said he would be back many time.
“Many, many times here and right across the country because I’m looking forward to this election campaign,” he said.
Mr Marles said Labor provided a strong alternative government.
“We have a vision for the country coming out of the pandemic – practical policies around more affordable child care and aged care; providing free TAFE; the Powering Australia policy, which will reduce people’s power bills.
“All of this is about building an economy which generates the secure, well-paying jobs we need, which ultimately sees wages grow.”
Mr Morrison said individual votes had consequence at the election.
“It determines the economy you will live in for the next decade,” he said.
“It determines how strong Australia can be in one of our most uncertain times.”
Mega impact of defence gun making at Avalon revealed
Businesses in the Geelong region will benefit from a $1 billion defence contract into the 2040s, the Morrison government says.
Prime Minister Scott Morrison is due to visit Avalon on Friday morning to launch construction of the $170m manufacturing facility needed to build self-propelled howitzer guns and armoured ammunition resupply vehicles.
Mr Morrison said Hanwha Defense Australia’s manufacturing facility would be completed in 2024, and the howitzer contract would require 300 employees across its lifespan.
“As construction ramps up it will create up to 100 jobs, and once this cutting edge facility is up and running around 300 locals will be employed at the site,” Mr Morrison said.
“Importantly, several local businesses will be engaged along the way to help deliver this critical $1 billion defence project.”
Hanwha will build 30 howitzers and 15 resupply vehicles, used to replenish stocks of artillery shells on missions, at Avalon following a Morrison government promise at the 2019 election.
Defence Industry Minster Melissa Price said the mobile howitzers would provide an advantage for the Australian Defence Force.
“The big advantage of these highly mobile, hard-hitting weapons is that they can fire, and immediately move, before any enemy can accurately locate them,” Ms Price said.
“The new guns, mounted on tracks and with heavy armour, offer much better protection to their crews in the face of nuclear, biological, chemical and radiological threats.
“The result is that our troops have a mobile and versatile weapon system that gives them the best possible chance of successfully completing their mission and returning home safely.”
Ms Price said “90 per cent” of maintenance on the howitzers and resupply vehicles would be completed in Australia.
“The opportunities for our defence industry are significant and will benefit local companies until the late 2040s.
“The self-propelled howitzers are just the latest step in the Morrison Government’s 10-year plan to invest $270 billion to increase Defence capability, not only securing the defence of our nation but bringing enormous benefits to our defence industry.”
Victorian Liberal Senator Sarah Henderson said: “The Morrison Government’s decision to base the $1 billion Howitzer defence project in Geelong, reversing Labor’s cancellation of this contract in 2012, is an absolute game-changer.”
Liberal candidate for Corio Manish Patel said project would continue to build the region’s reputation as a defence industry hub.
“This project will make Geelong one of the country’s most important centres of defence industry and is a real vote of confidence from the Morrison Liberal Government in our city, and our people,” Mr Patel said.
Liberal Candidate for Corangamite Stephanie Asher said: “(The howitzer project) will mean practical benefit to businesses large and small not just here at Avalon, but for the entire region including in the seat of Corangamite.”
Location where $27bn defence tanks could be built
The South Korean conglomerate vying for a $27 billion defence contract to manufacture up to 450 infantry fighting vehicles has reaffirmed it will build them at Avalon if its bid is successful.
It comes as a decision on the Land 400 Phase 3 contract, to be awarded to either Hanwha Defense Australia or Rheinmetall Defence Australia, was pushed back to after the federal election.
Rheinmetall which will base its operations at Queensland is reportedly the front runner from the contract.
Although a Hanwha Defense Australia spokesman said its Redback vehicle was “ by far and away” the best.
“Should Hanwha be successful in Land 400 Phase 3 the vehicles will be built at the new Avalon facility in Greater Geelong,” the spokesman said.
“The howitzer project (Land 8116) will proceed at the new Avalon facility regardless of the outcome of Land 400 Phase 3.”
Asked if the Commonwealth had asked Hanwha for further detail on its Land 400 proposal, the spokesman said: “No comment.”
A Defence Department spokeswoman said: “A recommendation on the preferred LAND 400 Phase 3 tender remains on schedule to be considered by government this year.”
The department did not respond to questions asking if it had provided advice to government on its preferred tenderer, or if it had been instructed by government to hold off awarding the contract until after the federal election.
Geelong Manufacturing Council chief executive Jennifer Conley said the organisation hoped Hanwha was awarded the Land 400 contract.
“It is important to underline that the Land 8116 program — the self-propelled Howitzer manufacturing program — will go ahead regardless of that outcome,” Mr Conley said.
“The K9 (howitzer) will be built from the company’s Avalon armoured vehicle facility and is set to deliver a massive benefit to region in the form of skilled jobs and supply opportunities for our local advanced manufacturing and engineering companies.
“Geelong has a deep manufacturing skills and infrastructure base – and Hanwha’s bid for the Land 400 contract, the Redback, is considered among the best in its class.”
It comes as Victorian Liberal Senator Sarah Henderson met with members of the Korean parliament’s National Defense Committee on Sunday.
Ms Henderson said: “The $1 billion Howitzer defence project is an incredible win for our region. After Labor shockingly cancelled this contract back in 2012, the Morrison Government is proudly delivering this game-changing investment in defence vehicle manufacturing to Geelong. I fought tooth and nail for this project. Construction of Hanwha’s $170 million manufacturing facility at Avalon Airport is about to begin.”
Asked if Labor would review the Land 400 phase 3 contract if it won government, Leader Anthony Albanese said the party would complete a “defence forward posture review” for the first time in decade.
“We need to actually get smarter, make sure that our investments produce an outcome and produce greater capacity. Because what we have is a capability gap that is coming because of the failure of this government to actually deliver on its commitments,” Mr Albanese said.
Deputy Labor Leader Richard Marles said: “I’m not going to speculate on the Morrison Government’s announcement as their track record in this space says enough.”
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