The deal is expected to generate $6.17 million for the local economy, creating six new jobs in Port Macquarie and sustaining approximately 18 employees.

Minister for Defence Industry Melissa Price congratulated Bale Defence, which previously provided the first generation of rough terrain vehicles to the ADF.

"The rough terrain vehicle provides an important tactical, light, all-terrain land capability used by the ADF on operations and exercises both in Australia and overseas," Minister Price said.

The minister said the deal contributes to a broader push to bolster sovereign manufacturing capability.

“This contract ensures Australia can continue to manufacture, modernise and enhance this critical capability locally, to meet our Defence Force's evolving requirements,” she said.

"This contract is an excellent example of the benefits of our Defence industry partnerships for both the ADF and Australian businesses. 

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“Our Defence industry partnerships will only continue to grow and strengthen with our government's $270 billion investment in Defence capability over the next decade."

Member for Cowper Pat Conaghan noted the benefits for the regional community.  

"I'm not at all surprised that a project of this calibre has come out of the Cowper electorate on the mid-north Coast," Conaghan said.

"We're an innovative bunch, and to see that ingenuity rewarded like this is fantastic news for our region. 

"Huge congratulations to Bale Defence for the recognition of excellence by securing this exciting contract, and I look forward to seeing the project come to fruition.”

[Related: Defence invites industry to apply for base contracts]