Strategic defence partnership to secure hundreds of Australian jobs

June 29, 2020 - Thales and the Australian Government have signed a decade long contract worth more than AUD 1 billion (1) that guarantees the Australian manufacture and supply of strategic munitions to the Australian Defence Force. 

This contract demonstrates that Australia’s sovereign defence industry is vital to delivering a capability advantage to the Australian Defence Force (ADF).

The continued long-term partnership between Thales and Defence reinforces the Government’s commitment to maintaining a world leading, competitive and safe domestic munitions manufacturing capability in Australia. 

Thales continues to build long-term relationships with hundreds of Australian suppliers, building Australia’s self-reliance and the capability of the broader Australian manufacturing sector.

Thales’s recent supply chain study with AlphaBeta Advisers proved that there is a strong correlation between Sovereign Industry Capability and benefits flowing to Australian suppliers.  

In 2019, Thales spent AUD 113 million with its Australian suppliers for munitions and small arms, supporting 414 direct jobs in the supply chain.  

This contract will enable Thales to secure more than AUD 450 million in export and non-ADF orders over the coming 10 years, demonstrating Australia’s world leading munitions manufacturing capability.

The Group has invested more than AUD 20 million in research and development and AUD 25 million in capital infrastructure over the last 10 years at the Benalla and Mulwala facilities and will invest further to develop new and world leading products for the Australian Defence Force.

Thales employs approximately 650 highly skilled staff between its two Australian Government owned facilities in Benalla and Mulwala. It exports products to 17 countries globally.

“We have worked closely with Defence to manufacture munitions for more than 20 years, using our deep technical expertise to provide urgently required munitions to the Australian Defence Force whilst on operations.”

Chris Jenkins, Chief Executive, Thales Australia

“Everything is about trust. Especially when it comes to Defence. This historic contract with the Australian government builds on our trusted partnership with Defence for the long term supply of essential equipment”.

Christophe Salomon, Executive Vice President, Thales Land and Air Systems

(1) Of which around AUD 300 million will be booked in 2020. 

About Thales 
Thales (Euronext Paris: HO) is a global technology leader shaping the world of tomorrow today. The Group provides solutions, services and products to customers in the aeronautics, space, transport, digital identity and security, and defence markets. With 83,000 employees in 68 countries, Thales generated sales of €19 billion in 2019 (on a pro forma basis including Gemalto).

Thales is investing in particular in digital innovations — connectivity, Big Data, artificial intelligence and cybersecurity — technologies that support businesses, organisations and governments in their decisive moments.

About Thales in Australia
Thales in Australia is a trusted long term partner of the Australian Defence Force and is also present in commercial sectors ranging from air traffic management and ground transport systems to security systems and services. Employing around 3,900 people, Thales in Australia recorded revenues of more than A$1.39 billion in 2019 and export revenue of over A$1.6 billion in the past 10 years.

Thales Australia has a history of patient long term investment to build advanced in-country capability across manufacturing, critical systems and services. Close collaborative relationships with local customers, Australian SME partners and research institutions combined with technology transfer from our global business enables Thales to tailor high quality sovereign solutions for Australian and export markets.

Contact
Press Contact: Alasdair Cameron
+61 (0)2 8037 6032 / +61 (0)404 073 169 
alasdair.cameron@thalesgroup.com.au

Constance Arnoux
+33 (0)6 44 12 16 35 
constance.arnoux@thalesgroup.com

View source version on Thales Group: https://www.thalesgroup.com/en/australia/press-release/strategic-defence-partnership-secure-hundreds-australian-jobs