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Australia’s fastest-growing construction firm, Kapitol, is expanding its expertise in high-security, complex projects, entering the defence sector with a major new contract.
The company has been selected to deliver stage two of Hanwha Defence Australia’s $170 million Armoured Vehicle Centre of Excellence (H-ACE).
Stage two will see the design and construction of new facilities at Hanwha’s 32,000-square metre Avalon site in Victoria’s Geelong region. The facility will serve as a manufacturing hub for armoured vehicles, supporting the Australian Defence Force’s (ADF) procurement of 129 Redback infantry fighting vehicles under LAND 400 Phase 3.
Kapitol director and co-founder, Andrew Deveson, highlighted the company’s expansion into the defence sector as a testament to its ability to deliver critical infrastructure at a national level.
“Working with the defence sector at this scale demands more than technical expertise, it requires an innovative approach that integrates security and efficiency. Our work on Hanwha Defence Australia’s H-ACE facility represents a significant step in growing our presence in Australia’s industrial manufacturing sector,” Deveson said.
“As a project of national significance, the H-ACE facility underscores our commitment to delivering state-of-the-art infrastructure that aligns with Hanwha’s mission.”
Hanwha Defence Australia general manager facilities, Hichang Lee, outlined the planned developments for stage two.
“This expansion will incorporate an EMI/EMC chamber, an enclosed firing range, a second production line, vehicle and equipment storage and a heavy washdown facility,” Lee said.
“Stage one was focused on establishing our Australian footprint and supporting the Huntsman vehicles under LAND 8116. Stage two is geared towards the Redback infantry fighting vehicles under LAND 400 Phase 3 and beyond.”
The construction of stage two will implement innovative strategies to streamline delivery timelines. Structural models and specialist equipment will be prefabricated off-site to minimise assembly time and improve installation efficiency, aligning with the Defence Strategic Review’s accelerated timeline.
“One of the biggest challenges in construction is rework caused by avoidable mistakes,” Deveson said. “Eliminating these inefficiencies through careful planning and execution can significantly improve project outcomes and workforce productivity.”
“By incorporating prefabrication into the construction process, we can fast-track timelines and ensure the facility is prepared to meet the Defence Force’s operational requirements.”
Hanwha Defence Australia acting managing director, Dean Michie, emphasised the strategic importance of the H-ACE project.
“The H-ACE is not just a key facility for Hanwha globally, but also a crucial asset for the Australian Defence community. The capability it provides to Victoria and the broader Defence sector is resilience in action,” Michie said.
Stage two is expected to be completed in 2026 and will engage a workforce of approximately 1,500 over the course of the project. The facility contributes to Kapitol’s expanding $2 billion project pipeline and reinforces its growing expertise in delivering complex industrial developments across Australia.
