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Australia’s lucrative defence work heading north

QUEENSLAND'S resurgence as an aerospace centre along with maritime and land vehicles is reflected in the latest defence contracts won by major companies and their subcontractors.

Underlining the diversity of defence work secured by Queensland is Mack Trucks Australia supplier of heavy vehicles to the ADF who is also expected to contend for Project Land 121 (Overlander), a $3bn, 12-year rolling acquisition cycle for 10,000 Army field vehicles and trailers.

MD and CEO Colin Partington told Manufacturers’ Monthly that if successful the vehicles will be manufactured and life-supported at Mack’s 11 company plants and service locations throughout Australia, with the trailers to be subcontracted locally.

One of Mack’s major current projects involving up to 53% local manufacture is the $35m radical refurbishment and conversion of 64 Army Heavy Recovery Vehicles (HRVs) at the company’s Wacol plant near Brisbane. Rocklea Pressed Metal manufactures the new cabin support structures and major chassis componentry. The Crew Cabs on the HRVs made by Electrostatic Coatings are among the many locally manufactured items. Other local suppliers include transfer case oil cooling systems by Normac, cab insulation and noise reduction kits by Comtech Automotive and fuel tank and chassis angles by GWM of Toowoomba.

Mack’s involvement in Australian defence projects is reflected in the recent opening of a dedicated defence business unit at the company’s Sumner Park branch near Brisbane.

“Defence firms are increasing their presence in Queensland by moving north in line with the movement of operational units in order to reduce their logistics tail,” Tony McGrady, Queensland minister for state development, told Manufacturers’ Monthly.

“One of the critical tasks of Qantas’ new Heavy Maintenance Facility in Brisbane, requiring special tooling made here to produce bracket assemblies, will be the modification of four of the five A330 refueling air-to-air tanker aircraft for the ADF,” McGrady said.

Other Australian manufactured materials for the defence effort include parts for Tiger helicopters assembled by Brisbane-based Australian Aerospace including components for the Tiger centre fuselage, lateral skin, the centre module lower fuel tank fairing and the stub wings as well as electrical harnesses (260 per aircraft) manufactured by Australian Defence Industries in Sydney.

Australian Aerospace (AA), a Eurocopter subsidiary, will also assemble 18 of the 22 Tiger Armed Reconnaissance Helicopters (ARH) for the Army. The first Australian-assembled aircraft are already on the production line.

Notably, AA and its partners are also building components for Tigers ordered by other countries.

Queensland-based Micreo Ltd manufacturer of electronic warfare (EW) equipment for a number of ADF aircraft has been awarded a contract for critical EW equipment for the Joint Strike Fighter program.

Another Brisbane manufacturer also involved in this program Ferra Engineering will manufacture alternate mission adapters and structural assemblies for the aircraft.

Mc Grady said that the growing importance of defence manufacturing has been accelerated by the execution of helicopter and fixed wing aviation contracts at Amberley and Oakey. The engine maintenance contract at Amberley is performed by Queensland company Tasman Aviation including electroplating and machining processes.

Boeing has recently received an order for two extra Wedgetail airborne early warning aircraft (based on the 737) for the RAAF, bringing the total to six making it economical for Boeing to modify and fit out four of those aircraft at Amberley.

Manufacturers’ Monthly understands Australian industry involvement in Project Wedgetail is already worth over $400m.

“Completion of the four aircraft here will increase Australian industry involvement by $80m. Strategic industry development activity worth an additional $99m has also been included with the purchase of the extra two aircraft,” the Minister said.

The Wedgetail project will create around 170 new jobs in South East Queensland – mostly based at Amberley.

Boeing told Manufacturers’ Monthly it expects to establish a centre of excellence at Amberley for large aircraft modification. The region will then be well placed to win commercial contracts, such as passenger to freighter conversions, cabin reconfigurations and cockpit upgrades, along with RAAF work.

Raytheon's Brisbane workshops (formerly part of Honeywell) are heavily involved in current defence projects subcontracting manufacturing and support work to a number of Australian companies including Sydney-based Thomas Electronics which designs and manufactures, test printed circuit board assemblies, mechanical enclosures for electronics assemblies, test equipment and general systems engineering.

7/10/2004
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