The Australian Government and Thales have signed a decade long contract worth more than AUD 1 billion ($ 687,592.39) that guarantees the Australian manufacture and supply of strategic munitions 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. This contract demonstrates that Australia’s sovereign defence industry is vital to delivering a capability advantage to the Australian Defence Force (ADF).
“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,” said Christophe Salomon, Executive Vice President, Thales Land and Air Systems.
“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,” said Chris Jenkins, Chief Executive, Thales Australia.
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.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. In 2019, Thales spent AUD 113 million (77.7 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 ($ 309 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 ($ 13.7 million) in research and development and AUD 25 million ($ 17.2 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.
Thales in Australia is a trusted long term partner of the Australian Defence Force and is also present in commercial sectors ranging from air traffic management and ground transport systems to security systems and services. Employing around 3,900 people, Thales in Australia recorded revenues of more than A$1.39 billion in 2019 and export revenue of over A$1.6 billion in the past 10 years. Thales Australia has a history of patient long term investment to build advanced in-country capability across manufacturing, critical systems and services. Close collaborative relationships with local customers, Australian SME partners and research institutions combined with technology transfer from our global business enables Thales to tailor high quality sovereign solutions for Australian and export markets.