SA businesses Land global supply chain opportunities
27 April 2018
South Australian businesses are gearing up for years of supply chain work on one of the world’s largest armoured fighting vehicle programs, the Australian Defence Forces’ LAND 400 project.
Last month, Rheinmetall Defence Australia was awarded the $5 billion contract to supply the Australian Army with 211 combat reconnaissance vehicles under Phase 2 of the project.
The project, to be centred in Queensland, will create nearly 1500 jobs nation-wide, while providing the opportunity for around 40 Australian businesses to be involved in supply chain work.
Mawson Lakes-based electronics manufacturer Codan is among over half a dozen South Australian small-to-medium businesses preparing to enter Rheinmetall’s global supply chain for the project.
The company will help supply complex electronics assemblies for the Boxer CRV vehicle, according to Managing Director Donald McGurk.
“Codan is delighted to work with Rheinmetall in the delivery of their Australian industry capability commitments to the LAND 400 program,” he said.
“Some of the work will be done in-house and a great deal will be sourced outside. This means we will be leveraging our well-established Australian supply chain to produce products competitive with European manufacturers.
“Rheinmetall recognises the advantages Codan provides as a big SME in the Australian market, with a strong track record of delivery.”
South Australian company REDARC Electronics, a key SME in the defence sector, will also assist in delivering a range of services and products for the project, after it was selected as a teaming partner for Rheinmetall in June 2017.
REDARC Managing Director Anthony Kittel said LAND 400, in addition to other defence projects, will help underpin the company’s future growth plans and create advanced manufacturing jobs.
“Together with our commercial products export strategy, this announcement will support REDARC in creating another 100 jobs by 2020,” he said.
“LAND 400 forms a key part of REDARC’s overall defence strategy, which comprises land vehicles and a number of maritime programs including the Future Frigates and the Future Submarines.
“This announcement is exciting news for manufacturing in South Australia. It’s an opportunity to work with a dedicated and highly skilled Prime to support the Australian defence industry.”
Rheinmetall Managing Director Gary Stewart said the defence prime is working with 40 companies – teaming partners and suppliers who have been pre-selected prior to the announcement of preferred tender – to qualify and certify their products and services so they can be allocated workshare in the LAND 400 Phase 2 program.
“Once a contract signature has been achieved (with the Australian Government), Rheinmetall will be working on three fronts – establishing a network of trusted companies around Australia to help us deliver the LAND 400 Phase 2 combat reconnaissance vehicle capability; proceeding with the construction of the Military Vehicle Centre of Excellence in Ipswich; and commencing training Australians in Germany to design and manufacture the BOXER CRV vehicle for Australia,” he said.