Thales and Australian Government signed decade-long contract worth more than AUD 1 billion for munitions.

Thales and the Australian Government have signed a decade-long contract worth more than AUD 1 billion 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).
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Thales, a world-leading company in ammunition production (Picture source: Thales)

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.