Three Tasmanian advanced manufacturing companies will deliver millions of dollars for the Tasmanian economy following the recent Land 8116 Phase 1 announcement by Hanwha Defense Australia and the Australian Government.
The signing of an agreement with Hanwha to build Australia's next-generation self-propelled artillery systems will see local companies such as CBG Systems, Elphinstone Pty Ltd and Penguin Composites provide key systems and components to the project.
The deal is part of the ADF's Land 8116 Phase 1 project which will acquire 30 Huntsman AS9 Self-Propelled Howitzers and 15 Huntsman AS10 Armoured Ammunition Resupply Vehicles for the Australian Army.
As part of Team Huntsman, CBG will supply its patented SolarSigmaShield signature management system, Elphinstone will produce the hull and turret structures, and Penguin Composites will manufacture the fibreglass composite fuel tanks.
This is the second major land defence vehicle contract awarded by the ADF that benefits Tasmania, the last being the ADF's Hawkei program where Thales Australia delivered 1,100 armoured vehicles which also included components from Penguin Composites.
Jeremy Rockliff, Minister for Advanced Manufacturing and Defence Industries said this opens the door for Tasmanian companies to participate in other significant contracts Hanwha is vying for, in particular, the Land 400 Phase 3 contract for more than 400 infantry fighting vehicles – the largest procurement the Australian Army has ever undertaken.
“In the past five years alone, Tasmanian companies are estimated to have secured more than $100 million in defence-related contracts and are currently in the running for another $100 million in work,” Rockliff said.
"The success of these companies with the Land 8116 project is a sure sign that our state's capabilities in advanced manufacturing and defence supply are being recognised not just nationally but around the world."
Rockliff added the Tasmanian Government recognised the advanced manufacturing sector was a key contributor to the state’s economy and a significant employer across Tasmania.
“That's why we are focused on creating the right conditions for Tasmanian manufacturers to grow and prosper, to invest and to employ more Tasmanians. I congratulate CBG Systems, Elphinstone Pty Ltd and Penguin Composites on being awarded these agreements,” he said.
Managing Director of CBG Systems, Javier Herbon described it as “a pivotal contract” that guarantees significant ongoing work, to supply the company’s SolarSigmaShield product to the Australian Army.
"It also opens up other opportunities where the products combined thermal, camouflage and lower signature properties can be utilised by other Hanwha customers around the world," Herbon said.
CEO of Penguin Composites, John van der Woude, said his company was currently completing a significant contract for components on 1100 vehicles for Thales. “We welcome the opportunity to again pivot our manufacturing to cater to more vehicles for the Australian Army,” he said.
“Hanwha have the potential to be an even bigger customer of our advanced composites manufacturing facility here in Penguin.”