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The prime minister is confident the newly established industrial co-operation agreement with South Korea would bolster the nations’ mutual response to regional security threats.
The Commonwealth government has officially awarded a contract to Hanwha Defense Australia for the supply of 30 Huntsman AS9 self-propelled artillery systems and 15 AS10 armoured ammunition resupply vehicles to the Australian Army under the LAND 8116 Phase 1 program.
As part of the contract, valued at approximately $1 billion, the vehicles will be manufactured in Australia at a new Hanwha facility based in Greater Geelong, Victoria.
Construction of the facility is scheduled to commence in the second quarter of 2022, spanning approximately two years, while production of the AS9 Huntsman self-propelled howitzers is expected to begin in the fourth quarter of 2024.
Several Australia-based companies have been tasked with supporting Hanwha’s project, including Kongsberg Defence Australia, ElmTek, Penske Australia, HIFraser, CBG Systems, TAE Aerospace, Bisalloy Steels, Thales Australia, KBR subsidiary Sigma Bravo and Elphinstone.
Prime Minister Scott Morrison, who was joined by President of the Republic of Korea Moon Jae-in at a signing ceremony at Parliament House in Canberra, noted the significance of the new deal as a means to strengthening regional security co-operation.
“Our Comprehensive Strategic Partnership with the Republic of Korea is underpinned by our joint commitment to defence and security co-operation,” he said.
“The contract with Hanwha demonstrates the value of industrial collaboration in supporting our countries in addressing mutual security challenges.”
Minister for Defence Peter Dutton listed the capability benefits of the platforms, which he said would bolster Army’s offensive and defensive posture.
“The prime ability of the new vehicles is to fire and move quickly, avoiding enemy counter-attack. This project will mean a significant increase in the level of firepower and security for Australian artillery capability,” Minister Dutton said.
“We are committed to keeping our region safe, while protecting our interests in a rapidly changing global environment.
“The self-propelled howitzer capability, including a strengthened industrial base, is one of several projects that will modernise the Australian Army, ensuring it continues to maintain a capability advantage now, and into the future.”
In addition to bolstering capability, the contract is tipped to generate approximately 300 jobs across facility construction, acquisition and maintenance, with support opportunities for Australian industry expected to be offered over the next two decades.
Minister for Defence Industry Melissa Price said the investment would support the sustainment of critical defence capabilities and strengthen Australia’s position as an exporter of military equipment and technology to allies.
“The new facility will create hundreds of local jobs and become a national asset for military capability, supporting land combat vehicles for the Australian Army,” Minister Price said.
“Australian industry will play a vital role delivering and sustaining the Huntsman capabilities at the new facility.
“The announcement of this significant contract and the future facility is tremendous news for Victoria and working Australians, as well as defence companies across the country.”
This is the latest investment in Army capability, coming just days after the government confirmed plans to purchase up to 40 Sikorsky-built UH-60 Black Hawks to replace the Australian Army’s fleet of 47 Airbus-built MRH-90 Taipan helicopters.
A request has been made as part of a provisional assessment process designed to inform a prospective purchase.
Representatives from Sikorsky Australia – a subsidiary of Lockheed Martin – informed Minister Dutton during preliminary discussions that six Black Hawk helicopters could be available from the company’s 2022 global production line, with the remaining helicopters potentially delivered by 2026.
This comes amid ongoing concerns over the troubled MRH-90 Taipan fleet, currently in service as Army’s utility aircraft.
[Related: Commonwealth, Hanwha Defense Australia sign AS9 Huntsman contract]
