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Victorian defence company DefendTex is continuing its negotiations with Brazil’s Avibras to secure significant missile manufacturing capability in Australia.
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DefendTex announced it is seeking a $70 million loan from Export Finance Australia for the acquisition of advanced missile manufacturing capability from Brazil, enabling a vital knowledge transfer to Australia, according to a corporate statement released on 13 June.
The Victorian defence company, Australian-owned and based in Dandenong South, had previously entered into negotiations to acquire Brazil’s largest defence company Avibras and secure knowledge on how to manufacture long-range strike missiles and cruise missiles in Australia.
“Regrettably, Australia’s sovereign defence industry lacks a major weapons company and government backing,” DefendTex chief executive officer Travis Reddy said.
“This means that Australia will always be dependent on other nations to provide any significant strike capability and it is time to change this.
“If DefendTex acquires Avibras with Australian government support, we can establish a cost-effective missile manufacturing capability in Australia that will employ around 500 workers, keep the profits in the country, thereby generating exports and tax revenue.
“Most importantly, we will have the manufacturing capability to defend ourselves in a time of conflict.
“If Export Finance Australia can loan $70 million as opposed to spending ... with US defence companies, Australia will be in a stronger position militarily within a shorter timeframe at a fraction of the cost.”
The Victorian company has so far has been unable to gain the support of the Australian government to enable the deal to close, according to the company.
The Brazilian company previously confirmed in April this year that Avibras Indústria Aeroespacial and DefendTex have been engaged in advanced discussions to facilitate a potential investment aimed at the economic and financial recovery of Avibras, with the goal of maintaining its manufacturing facilities in Brazil, resuming operations as soon as possible, and ensuring the fulfilment of contractual obligations with the Brazilian government and other clients.
“Both companies are committed and diligently working to finalise the specific terms and conditions of the investment and will keep the market informed,” the public statement said.
