Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Munition factories contract negotiations commence

australian munitions

Defence has entered into negotiations with Australian Munitions, a subsidiary of Thales Australia, over continued management and operation of its factories in Benalla and Mulwala.

Defence has entered into negotiations with Australian Munitions, a subsidiary of Thales Australia, over continued management and operation of its factories in Benalla and Mulwala.

Negotiations with Thales are ongoing, but the government has said it will implement a new strategic arrangement for the management and operation of the factories, with the aim of improving price competitiveness and increasing exports of Australian-manufactured ammunition and explosive products.

Advertisement
Advertisement

Defence Industry Minister Christopher Pyne said the long-term, performance-based arrangement will provide a greater degree of certainty for Thales as the principal tenant and operator of the facilities and will enable seamless transition from the current contract when it expires in mid-2020.

The future arrangement will also see underutilised areas of the facilities sub-leased as additional precincts to other munitions companies, either where Defence identifies a requirement for a particular product, or where a commercial or export opportunity exists.

"Drawing on the depth of engineering and manufacturing skills resident in these factories, the decision to commence negotiations with Thales builds on the well-established relationship between Thales and Defence," Minister Pyne said.

PROMOTED CONTENT

Minister Pyne said Defence-owned munitions factories are important for the Australian Defence Force and this announcement offers certainty for the Benalla and Mulwalla workers.

"With both facilities employing over 640 highly-skilled workers, this announcement provides certainty for workers that both factories will remain open for the long term," Minister Pyne said.

"Under the existing contract, employment across the Benalla and Mulwala sites has increased by over 80 employees in 2017, generating vital job opportunities in regional Victoria and New South Wales."

The Mulwala factory is 1,030 hectares and is the only remaining manufacturing site for propellants and high explosives in Australia.

Munition factories contract negotiations commence
Australian-munitions.jpg
lawyersweekly logo

 

more from defence connect

Dec 3 2020
Serco successfully secures HMAS Watson training services rebid
Serco has been awarded a contract to continue providing high-quality simulator-based maritime warfar...
Dec 3 2020
PODCAST: Top 5 – Defence Connect’s best Maritime & Undersea Warfare stories
2020 has been a big year for the nation, Defence and defence industry, with major projects reaching ...
Dec 3 2020
Northrop Grumman, Chief Information Officer Group prepare for Triton Arrival
Northrop Grumman has successfully completed Phase 1A – initial development of the MQ-4C Triton Net...
FROM THE WEB
Recommended by Spike Native Network