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The company’s managing director has stepped down just months after the company announced a restructure.
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Elbit Systems of Australia (ELSA) has announced it has accepted the resignation of managing director, Major General (ret’d) Paul McLachlan AO CSC.
MAJGEN McLachlan has reportedly requested to step down from 23 December 2022 after three years of service.
The resignation comes two months after ELSA confirmed plans to “reorganise” the business as its work on Project LAND 200 Tranche 2 — which involves the delivery of a battle management system (BMS) and a tactical communications network — draws to a close.
“I am very proud of overseeing the completion of the transformation, which we have undertaken in a remarkably short timeframe, therefore, it is an appropriate time for me to hand over the management of the company to a new leader,” McLachlan said.
ELSA chair Dr Karen Stanton is set to assume the role of executive chair ahead of the appointment of a permanent replacement.
According to Dr Stanton, the executive leadership team would “ensure a smooth handover”.
“I wish to thank Paul for his contribution to Elbit Systems of Australia as a partner and as a leader who has achieved remarkable outcomes in difficult circumstances," Dr Stanton added.
“The transformation and reorganisation of the business enables us to access a wider cross-section of Elbit’s product portfolio, placing ELSA in a better position to meet the challenges and opportunities of future programs within the Australian defence industry sector.”
Last year, ELSA was informed the Australian Army had suspended the use of the in-service battle management system, citing security concerns despite safety assurances from the Australian Signals Directorate.
Following the program’s suspension, ELSA commenced a review of its organisational posture, potentially resulting in a reduction of its workforce.
However, ELSA has committed to “retaining its core capabilities” to support existing and future defence businesses, including C2 software network development and support for international programs.
ELSA remains contracted to support the BMS and deliver associated services until March 2023.
The company is also in the running to support a number of other key defence projects, including a potential contribution to LAND 300 Phase 3 and LAND 125 Phase 4.
