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The Australian government has acquired an ownership interest in CEA Technologies for the continued development of the nation’s radar capability.
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The Australian defence contractor and radar systems manufacturer has previously won contracts to supply air defence radar systems to the Australian Defence Force and upgrade sensors on Royal Australian Air Force EA-18G Growler electronic attack aircraft.
The new deal, announced on 27 April, will give the Commonwealth a non-controlling shareholding in CEA for 18 months from July this year.
After that time, CEA will be majority owned by the Commonwealth and become a new Government Business Enterprise.
The deal has no impact on procurement decisions by the Department of Defence and CEA will continue to operate as an independent for-profit company.
Deputy Prime Minister Richard Marles said the Minister for Defence and Minister for Finance will be joint shareholder ministers with responsibility for overseeing the Commonwealth’s investment in CEA.
“Today’s landmark agreement secures the longevity of this Australian company and guarantees supply of critical radar systems for the ADF, now and into the future,” he said.
“The approach the Commonwealth has taken, in partnership with existing shareholders, will ensure CEA is on the path to grow and develop over the long term, in order to meet the ongoing needs of Australia and its international partners.”
Long-term ownership arrangements of CEA will allow the company to develop products and services focusing on sovereign defence capability, innovation, and national security.
Additionally, the existing 600-strong workforce of staff and investors in CEA will have further certainty and clarity about the future.
Minister for Defence Industry Pat Conroy said the company provides critical capabilities for a number of national naval surface combatant projects and plays a vital role in national security.
“CEA is an Australian manufacturing powerhouse, with world-leading knowhow and decades of industry experience that has led to the design and development of cutting-edge radar systems,” he said.
“The phased array radar capabilities within CEA are a critical sovereign capability and today’s agreement protects the incredible capability of the CEA workforce and their unmatched ability in the field of radar technologies.”
Minister for Finance Katy Gallagher said the government’s staged investment in CEA maintains the capabilities, operational independence of CEA as a standalone company, and keeps residents safe while achieving value for the taxpayer.
