The defence contractor has announced a revamp of its business following changes to its program of work in Australia.
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Elbit Systems of Australia (ELSA) has confirmed plans to “reorganise” the business as its work on Project LAND 200 Tranche 2 — which involves the delivery of a Battle Management System (BMS) and a Tactical Communications Network — draws to a close.
Last year, ELSA was informed the Australian Army had suspended the use of the in-service Battle Management System, citing security concerns despite safety assurances from the Australian Signals Directorate.
Following the program’s suspension, ELSA commenced a review of its organisational posture, potentially resulting in a reduction of its workforce.
However, ELSA has committed to “retaining its core capabilities” to support existing and future defence businesses, including C2 software network development and support for international programs.
ELSA remains contracted to support the BMS and deliver associated services until March 2023.
The company is also in the running to support a number of other key defence projects, including a potential contribution to LAND 300 Phase 3 and LAND 125 Phase 4.
ELSA is also maintaining approximately 5,000 of the Australian Army’s small arms thermal weapon sights XACT TH65.
Managing director Major General (ret’d) Paul McLachlan AO CSC, said it was time for the company to focus on new and emerging opportunities after over a decade of support for the ADF.
He said the company would be “adjusting its workforce” to “optimise delivery of existing projects”, focusing on the company’s broader offering to support its “future upcoming business and significant opportunities in the Australian market”.
“Over the past three years, ELSA has conducted a comprehensive transformation into a truly Australian subsidiary of a global prime defence company,” McLachlan said.
“This transformation has significantly strengthened the governance, engineering, IT infrastructure and security within the company.
“This transformation has been acknowledged by the Commonwealth, which we believe positions us well to continue to support the ADF with some of the most advanced Australianised technology available.”
ELSA has also reaffirmed its commitment to a partnership with the Victorian state government, which involved leveraging the Centre of Excellence for Innovation to facilitate R&D opportunities to local universities and small and medium-sized enterprises.
The company is also involved in other global R&D activities.
“The restructuring of Elbit Systems of Australia will positively position the company for a bright and sustainable future by broadening the skill set and application of the engineering workforce and to provide better access to the company’s growing portfolio of capability solutions,” McLachlan said.
“Elbit Systems Ltd continues to see Australia as an important market and we look forward to our future partnership to provide cutting-edge capability to the ADF through our enduring Australian workforce.”