THE HON GREG COMBET MP
Parliamentary Secretary for Defence Procurement
Wednesday, 3 December 2008
073/2008
DEFENCE SIGNS AIR EXPENDABLE STORES CONTRACT
Greg Combet, Parliamentary Secretary for Defence Procurement, today
announced that Defence has agreed to enter into a long-term agreement with
Chemring Australia Pty Ltd for the in-country manufacture of pyrotechnics and
air-expendable stores such as flares and chaff, deployed from military aircraft.
“Through the long-term contract arrangement, valued at approximately $160
million over 10 years, Chemring will invest approximately $18 million in plant
and equipment at its facility in Lara, Victoria, to deliver leading edge
technology tailored to meet the stringent requirements of Defence,” Mr
Combet said.
“The contract reinforces Chemring Australia’s role as a key element of the
National Support Base supplying munitions to Defence, and will provide
ongoing employment for approximately 40 additional skilled workers.
“Establishing an in-country manufacturing facility enables Chemring Australia
to demonstrate the capability and capacity of Australian manufacturers to
supply munitions to the global market.”
In announcing the contract signing, Mr Combet said, “the establishment of an
in-country manufacturing capability positions Chemring Australia to
demonstrate the capacity to manufacture these items for the JSF project and
this will allow them to compete for work on the global fleet.
“The long-term contract, under which annual minimum order quantities are
guaranteed, assists in smoothing production throughput leading to increased
efficiencies in manufacturing. The contract will also lead to a more efficient
supply of flares and chaff which are often sourced from offshore,” Mr Combet
said.
An Australian-based manufacturing capability will also lead to opportunities for
export of Chemring products to the region.
Media contacts:
Rod Hilton (Greg Combet):
02 6277 4771 or 0458 276 619
Defence Media Liaison:
02 6265 3343 or 0408 498 664
NEWS 
