A $10 billion Armoured Fighting Vehicles program, which could provide 30 years of advanced manufacturing and sustainment work for South Australians, is at a cross road.
The Federal Government is poised in coming weeks to release its Request for Tender (RFT) for initial vehicles to be acquired under Defence Project Land 400.
Minister for Defence Industries Martin Hamilton-Smith said the Federal Government must support local jobs, requiring tenders to include a manufactured and supported in Australia option – otherwise there is a high risk the project will be delivered off-shore.
“South Australia is one of Australia’s leading armoured vehicle manufacturing and sustainment hubs, we are well placed to play a major role in Land 400,” Mr Hamilton-Smith said.
“Having built more armoured fighting vehicles than any other state in Australia, we have the skills and supply chain, and can confidently deliver Land 400.
“With key Defence facilities across the state, including Horseshoe Barracks, a major Army base at RAAF Base Edinburgh, DSTO, and major test and training ranges at Cultana, Woomera and Pt Wakefield, South Australia is the logical home for Land 400.
“We are engaged with potential bidders from around the world, promoting South Australia’s credentials and exploring how best we can support their bids.
“South Australians will hope the Federal Government similarly backs defence industry and the families who support it, by ensuring significant Australian industry involvement in delivery of this multi-billion project.
“South Australians are still waiting for the Federal Government to commit to its pre-election promise to build 12 submarines in Adelaide – and for news that our new frigates will be built here.
“The lack of certainty is already causing job opportunities to disappear and investment dollars to evaporate – the defence industry needs a positive solution,” Mr Hamilton-Smith said.
The Land 400 program aims to enhance Army’s mounted close combat capability to operate in a broad range of conflicts. The vehicles will be heavily armoured and approximately 30 tonnes, with high cross country mobility and a high level of lethality.
They are highly complex vehicles, with each taking months to build and costing up to $10 million.
The project includes three phases totalling approximately 700 vehicles. Initially this will include Combat Reconnaissance Vehicles to replace the existing fleet of Australian Light Armoured Vehicles, manufactured in South Australia (General Dynamics Land Systems – Australia).
This will be followed by Infantry Fighting Vehicles to replace the M113 Armoured Personnel Carriers, also produced locally (BAE Systems Australia), plus Manoeuvre Support Vehicles.
The Federal Government is expected to confirm a shortlist of bidders by the end of the year, which will each provide a sample of fully integrated vehicles to Defence for a two-year ‘Technology Demonstration phase’.
The vehicles are expected to be in operation by 2022.