The government has taken a significant step towards securing a major defence export deal for Boxer heavy weapon carrier vehicles made in Queensland for the German Army.
The Minister for Defence Industry, Pat Conroy, and his German counterpart, the Parliamentary State Secretary to the Federal Minister of Defence, Thomas Hitschler, have signed a Letter of Cooperation to start formal negotiations.
Once finalised, more than 100 Boxer heavy weapon carrier vehicles would be produced for Germany by Rheinmetall, leveraging production capacity at its Military Vehicle Centre of Excellence in Brisbane.
Defence will now enter into formal negotiations with the German Ministry of Defence and Rheinmetall to establish appropriate legal and commercial arrangements for what could be one of Australia’s largest ever defence export contracts.
“We are excited about the prospect of Boxers for the German Army being built in Brisbane, using suppliers across Australia to assist in the production," Minister for Defence Industry Pat Conroy said.
“This export opportunity would secure well paid secure jobs in Queensland and across the country, helping to build Australia’s defence industry and boost our economy.
“We are keen to export this world-leading capability to a trusted and respected security partner, and to further strengthen the defence relationship between our countries."
This follows the news on Monday that Rheinmetall has struck the arc on the first weld of materials for the first Australian Boxer vehicle entering production at the company's Military Vehicle Centre of Excellence in Queensland.
Rheinmetall has delivered a first batch of 25 Boxer CRVs to the Australian Defence Force (these were built in Germany and finalised in Queensland) and has commenced production of the second batch.