BAE Systems selects Victoria to build next-gen military vehicles

Published: 1 August 2017

Combat Reconnaissance Vehicle

Victoria had been selected as the preferred State by BAE Systems Australia to build 225 new Combat Reconnaissance Vehicles.

The Victorian Government has signed a Heads of Agreement with BAE Systems to build the state-of-the-art vehicles at the former Holden site at Fishermans Bend, should it win the contract for the LAND 400 Phase Two project.

Victoria has an outstanding track record in the design, development and manufacture of military vehicles for Australian and international customers. The world-class Bushmaster and Hawkei vehicles are already manufactured at Thales in Bendigo.

The State's research and development expertise, highly-skilled workforce and supply chain makes Victoria the natural home of vehicle manufacturing.

The LAND 400 Phase Two project is worth around $5 billion and would create more than 2,000 manufacturing and supply chain jobs in Victoria.

Victorian defence companies would get a large share of the work, with BAE Systems agreeing to partner with Marand, MOOG Australia, Motec, AME Systems, RUAG Australia, DVR Engineering, and APV to build vehicle components.

The new fleet of vehicles will replace the current Australian Light Armoured Vehicle fleet.

Victoria's defence sector is worth $8 billion to the local economy every year, and is made up of about 20,000 people and 400 businesses.

For more information about the Defence Industry in Victoria, visit defence.vic.gov.au.

Watch the video below to hear about the recent announcement:

Video transcript 

BAE Systems Australia - Land 400 announcement

Hon Daniel Andrews - Premier of Victoria
Today we announced that the Victorian government will partner with BAE Systems to, if successful, manufacture the LAND 400 Phase Two vehicle here at the Fisherman's Bends site. This is good for some 2,000 jobs direct as well as across the defence industry supply chain.

Victoria in every sense, leads the way, in technology, in product development, engineering, manufacturing. Our smarts when it comes to defence technology and manufacturing are well known and are proven.

Hon Wade Noonan - Minister for Industry & Employment
It's been terrific to be able to announce this partnership between BAE and Victoria such that, if they're successful, in about March/April of next year with the Commonwealth in securing the LAND 400 contract, that will be assembled here in Victoria.

BAE, of course, have a very strong and proven record when it comes to delivering vehicles like this, not just within Australia, but outside Australia as well. We've had generations of Australian and Victorian automotive workers build their careers building the vehicles that people drive on our roads today.

Glyn Phillips- Chief Excutive, BAE Systems Australia
We look forward to putting our proposal into the Commonwealth in the next week and we look forward to create what will be a world-leading, world-class sovereign-capability for Australia.

Sarah Henderson - Member for Corangamite
We are working together as a great team bidding for this amazing contract for Victoria. In Phase Two, it will be about four to five billion dollars in value.

The Hon Daniel Andrews - Premier of Victoria
This is a very significant purchase and one that presents us with an opportunity to partner with Australia's biggest defence company and one that we think can be, not only a win for our fighting men and women, giving them the best capability possible but also an opportunity for many thousands of jobs.

[Speaker: Authorised by the Victorian Government, One Treasury Place, Melbourne]