Strategic defence partnership to secure hundreds of Australian jobs

 

  • Thales and the Australian Government have signed a 10-year Strategic Domestic Munitions Manufacturing (SDMM) contract that will secure hundreds of jobs in regional New South Wales and Victoria,
  • The contract valued at over AUD 1 billion is a key pillar in Australia’s Sovereign Industrial Capability in munitions and small arms.
  • To support the Government’s drive to boost Australian Industry Capability (AIC) Thales has committed to 75% or more AIC whilst delivering the best capability to Defence.

Thales and the Australian Government have signed a decade long contract worth more than AUD 1 billion  that guarantees the Australian manufacture and supply of strategic munitions to the Australian Defence Force.

This contract demonstrates that Australia’s sovereign defence industry is vital to delivering a capability advantage to the Australian Defence Force (ADF).

The continued long-term partnership between Thales and Defence reinforces the Government’s commitment to maintaining a world leading, competitive and safe domestic munitions manufacturing capability in Australia.

Thales continues to build long-term relationships with hundreds of Australian suppliers, building Australia’s self-reliance and the capability of the broader Australian manufacturing sector.

Thales’s recent supply chain study with AlphaBeta Advisers proved that there is a strong correlation between Sovereign Industry Capability and benefits flowing to Australian suppliers.  
In 2019, Thales spent AUD 113 million with its Australian suppliers for munitions and small arms, supporting 414 direct jobs in the supply chain.  
This contract will enable Thales to secure more than AUD 450 million in export and non-ADF orders over the coming 10 years, demonstrating Australia’s world leading munitions manufacturing capability.
The Group has invested more than AUD 20 million in research and development and AUD 25 million in capital infrastructure over the last 10 years at the Benalla and Mulwala facilities and will invest further to develop new and world leading products for the Australian Defence Force.
Thales employs approximately 650 highly skilled staff between its two Australian Government owned facilities in Benalla and Mulwala. It exports products to 17 countries globally.

“We have worked closely with Defence to manufacture munitions for more than 20 years, using our deep technical expertise to provide urgently required munitions to the Australian Defence Force whilst on operations.”
Chris Jenkins, Chief Executive, Thales Australia
“Everything is about trust. Especially when it comes to Defence. This historic contract with the Australian government builds on our trusted partnership with Defence for the long term supply of essential equipment”.  
Christophe Salomon, Executive Vice President, Thales Land and Air Systems