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Prime lands major missile system contract

raytheon ms
One of Raytheon's ground-based missile systems in action

A major defence contractor has secured a $2 billion contract from the Australian government to develop a ground-based air defence missile system.

A major defence contractor has secured a $2 billion contract from the Australian government to develop a ground-based air defence missile system.

Raytheon, who secured the contract in an announcement made today by the government, has revealed that Australian businesses will have the opportunity to bid for work on the short range ground-based air defence system when a request for tender is formally announced – with final approvals for the project expected to be given by government in 2019.

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Canberra-based company CEA Technology is expected to bid for work to install its radar technology in the missile defence system.

Minister for Defence Industry Christopher Pyne said the project will use as much Australian content and labour as possible.

"Through a Risk Mitigation Contract, the government will ensure there are opportunities for Australian industry participation, with direct access to ­Raytheon Australia for local businesses to showcase their abilities," said Minister Pyne.

"Raytheon will hold workshops across the country to ­engage with local industry."

The $2 billion investment is part of the government's commitment to bring Australia's defence spending to 2 per cent of gross domestic product.

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The missile system will be used to protect airspace on foreign land where Australian troops are deployed. The Australian Army's 16th Air Land Regiment will man the missile system.

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Prime lands major missile system contract
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