Geelong howitzer order cut in defence review

THE number of military vehicles to be produced in Geelong has been cut considerably, following the long-awaited release of the Defence Strategic Review (DSR) earlier this week.

The federal Labor Government has accepted entirely or in principle all of the DSR’s recommendations, which set out a blueprint for Australia’s strategic policy, defence planning and resourcing into the future.

Commissioned by Labor in August 2022, the final DSR makes several sweeping recommendations.

These include immediately cancelling the second regiment of self-propelled howitzers for the Army under the Land 8116 Protected Mobile Fires project, which were to be built by Hanwha at its $170 million Armored Vehicle Centre of Excellence now under construction at the Avalon Airport precinct.

“These systems do not provide the required range or lethality,” the DSR states.

When it was previously in government, Labor delayed and eventually cancelled a proposal to build new self-propelled artillery.

However, the federal Coalition revived the deal in December 2021, placing an original order at a cost of about $1 billion for 30 self-propelled howitzers, 15 armoured ammunition resupply vehicles, and weapon-locating radars – collectively referred to as the Huntsman family of vehicles and a modification of the company’s K9 Thunder design.

Hanwha is also one of the two remaining contenders in the Land 400 Phase 3 contract for 450 infantry fighting vehicles (IFVs), but its plan to build the Redback IFVs at the Armored Vehicle Centre of Excellence if it wins may also be in jeopardy, as the DSR recommends deeply cutting the order to only 129 vehicles, to comprise one mechanised battalion.

Defence Minister and Corio Labor federal member Richard Marles said the DSR and his government’s response were “about maintaining peace, security and prosperity in our region”.

“There are a lot of tough decisions which need to be made, but in doing so, we are making them in the best interest of our Defence Force and our nation.

“Work to implement the Review starts today, ensuring our ADF and our Defence personnel has the capability they need to keep Australians safe.”

Victorian Liberal Senator Sarah Henderson – who talked up the need for the Land 8116 howitzers when the Coalition signed the deal in 2019 – said Hanwha’s final order had been cut from 90 vehicles to 45.

“This has been announced with no consultation or consideration of the profound uncertainty this creates for defence industry and our sovereign manufacturing capability.

“In stripping $1 billion of investment from our region, the Albanese government and Corio MP, Richard Marles, have broken Geelong’s heart.

“This is a very dark day for Geelong and regional Victoria. Once again, Mr Marles has turned his back on working families and the local jobs on which they so depend.”

The state government also announced this week it was distributing nearly $200,000 to five companies under the Victorian Land Systems Fund – Supply Chain Uplift Program, which aims to support local companies to become part of Hanwha’s supply chain by helping them meet specific technological, business system and accreditation requirements. Recipients include Waurn Ponds’ Hannagan Solutions, which will develop textiles to protect and camouflage military vehicles and soldiers.

Minister for Manufacturing Sovereignty Ben Carroll, Lara MP Ella George and Hanwha representatives visited the centre on Wednesday this week. “We want to see more Victorian-made products used by global defence firms like Hanwha, which is why we’re helping small and medium businesses to compete for and win major contracts,” Mr Carroll said.