The announcement was made at Avalon Airshow and will see the international partnership promote collaboration with Australian industry to foster innovation opportunities and support Australian expertise and jobs.
Minister for Defence Industry, Christopher Pyne, welcomed the announcement and said it is a positive sign for the Australian industry.
"Varley Group’s decision to invest in CTSi is a strong signal of confidence in the government’s industry and innovation agenda," Minister Pyne said.
"This partnership investment is a good example of how the government is seeking to strengthen the resilience of Australian industry and the collaboration within our industrial base to develop Defence capability, innovation and skills growth."
The new partnership is expected to provide a pathway to utilise local expertise to contribute to platform enhancements and expansion.
"The Australian government welcomes investment which provides further avenues to grow our defence industry’s export and innovation potential and improve its skills base in support of enhancing capability options available to the Australian Defence Force," Minister Pyne said.
The announcement comes just days after the NSW government launched its new Defence and industry strategy: Strong, Smart and Connected as reported on Defence Connect.
Speaking to Defence Connect about Varley's new partnership, NSW Minister for Industry Niall Blair said "Varley Group is one of a dozen or so companies participating on the NSW government stands at Avalon where we've seen very pleasing interest in our state's capabilities from both Defence and the defence industry.
"NSW leads the way in manufacturing, logistics, electronics, information and communications technology (ICT), systems integration, cyber security and business services.
"We're leveraging all these strengths at every opportunity to secure more defence work for our state to create more jobs, investment and innovation."
Varley's current manufacturing projects include custom emergency service, health, education and rescue vehicles, defence ambulances and arms storage facilities, industrial and recreational electric vehicles, power plant restorations and rail maintenance works.
In addition, services offered by Varley include custom engineering and production, made-to-specification manufacturing, electrical and mechanical repairs and repeat vehicle, marine and rail appliance maintenance.
CTSi s a small, veteran-owned company focusing on technical solutions and services for the US Department of Defense, NASA and commercial customers. They specialise in high-tech solutions for high-tech programs. These programs include the Navy Unmanned Combat Air System, the Next Generation Jammer program, and several Unmanned System programs such as the NASA Generic Transport Model program.