Howitzers to be built in Geelong in $1bn contract

SOME of the biggest guns in Australia’s military arsenal will be built in or near Geelong under a $1 billion defence contract signed this week.

Hanwha Defence Australia has won the contract to build the self-propelled howitzers and support vehicles as part of the federal government’s Land 8116 Phase 1 project.

An Armoured Vehicle Centre of Excellence will be established somewhere in the Geelong region, with construction to begin next year, but its precise location is not yet known.

Under the terms of the deal, Hanwha will build 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.

Prime Minister Scott Morrison said the contract would create at least 300 jobs spread across facility construction, acquisition and maintenance, as well as generating ongoing support opportunities for Australian industry until the late 2040s.

Hanwha Defence Australia’s parent company is located in South Korea, and Mr Morrison and President Moon Jae-in of the Republic of Korea witnessed the contract signing during President Moon’s visit to Canberra on Monday.

Speaking in Geelong earlier this week, Victorian Liberal Senator Sarah Henderson said the signing of the contract delivered on the Liberals’ election commitment in May 2019.

“This is an incredible opportunity for Geelong and Geelong workers – it brings defence vehicle manufacturing back to our great region and so it’s a great celebration for Geelong.”

While in government, Labor delayed and eventually cancelled a proposal to build new self-propelled artillery, but Senator Henderson said the Australian Defence Force still needed the weapons in the 21st century.

“The new age, if you like, howitzer guns are now firing up to about 70km in range, so this gives us much greater capability on the battlefield if we ever do need it, so it is very, very important that we have that very high level capability.”

Hanwha Defence Australia’s Redback design is also one of the two final contenders in Phase 3 of the Land 400 project, alongside Rheinmetall Defence Australia’s Queensland-based bid, and is expected to build up to 450 infantry fighting vehicles at the Armoured Vehicle Centre of Excellence if it wins that contract.

Senator Henderson campaigned hard in 2019 to have Land 400 vehicles built in some form in Geelong, but would not be drawn on the implications of Hanwha’s success in Land 8816 Phase 1 on the final decision for Land 400 Phase 3.

Victorian Minister for Industry Support and Recovery Martin Pakula congratulated Hanwha on its successful bid, and said the Victorian Government signed a Memorandum of Understanding with the company in January to formalise a long-term partnership to support the establishment of Hanwha’s defence manufacturing operations in the state.

“Victoria is the manufacturing state and this project will further boost our capabilities, creating hundreds of jobs and delivering benefits across the supply chain.

“This decision reinforces the strength of Victorian advanced manufacturing and the skills of our workers.”