Radio silence: Government quiet on backing DefendTex, Avibras deal

DefendTex announced it is seeking a $70 million loan from Export Finance Australia for the acquisition of advanced missile manufacturing capability from Brazil, enabling a vital knowledge transfer to Australia, according to a corporate statement released on 13 June.

The acquisition is seeking to secure knowledge on how to manufacture long-range strike missiles and cruise missiles in Australia.

The Deputy PM and Minister for Defence, speaking at a press conference at Osborne Shipyard in Adelaide on 21 June, said the government is not speculating on the negotiations.

“Look, I’m not going to comment on that,” Minister Marles said.

The Deputy PM also ruled out commenting on reports that Chinese state-owned defence manufacturer Norinco was also interested in acquiring Avibras.

DefendTex’s negotiations to acquire the Brazilian missile manufacturer are a rare opportunity for a veteran-owned Australian company to secure more than 60 years of guided weapon technology, intellectual property and expertise, according to DefendTex chief executive officer Travis Reddy.

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“The question is if China can see the value in the acquisition, with all of its industrial capacity, why can’t Australia see it?” Reddy said.

“(Australia’s lack of government-backed defence prime contractors) means that Australia will always be dependent on other nations to provide any significant strike capability and it is time to change this.”

Support from the Australian government in the form of a $70 million loan from Export Finance Australia is being requested, but has not been forthcoming, he said.

“With Australian government support, we can establish a cost-effective missile manufacturing capability in Australia that will employ around 500 workers, keep the profits in the country, thereby generating exports and tax revenue," Reddy added.

“Most importantly, we will have the manufacturing capability to defend ourselves in a time of conflict. (This is) one of those rare opportunities where there is no downside for the Australian government.”

Robert Dougherty

Robert is a senior journalist who has previously worked for Seven West Media in Western Australia, as well as Fairfax Media and Australian Community Media in New South Wales. He has produced national headlines, photography and videography of emergency services, business, community, defence and government news across Australia. Robert graduated with a Bachelor of Arts, Majoring in Public Relations and Journalism at Curtin University, attended student exchange program with Fudan University and holds Tier 1 General Advice certification for Kaplan Professional. Reach out via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or via LinkedIn.