MILVEHCOE to deliver jobs for Queensland SMEs

Redbank will be at the centre of Australia’s defence capability with the construction of a $170 million Military Vehicle Centre of Excellence (MILVEHCOE).

ICN Queensland is assisting Defence prime Rheinmetall Defence Australia and its partner, the Queensland Government, during the construction of the MILVEHCOE, which will become the company’s largest operation outside its native Germany.

This is a major project for ICN’s Queensland office and an ideal opportunity for local suppliers to be involved with a giant global company in the defence sector as it delivers Defence programs including Land 400 Phase 2, Land 121 3B and, should it be successful, the $15 billion Land 400 Phase 3 program.

Watpac, appointed by the Queensland Government as Managing Contractor for the construction of the MILVEHCOE, has already awarded work packages to more than 60 South East Queensland businesses worth in excess of $100 million.

“Rheinmetall is the largest supplier of military vehicles to the Australian Defence Force, and the MILVEHCOE will be its regional hub for the continuous design, manufacture, export and support for military vehicles, turrets and tactical systems,” ICN Consultant Abhiney Arora said.

“Once it’s completed early next year, the facility will deliver the Commonwealth’s $5.2 billion Land 400 Phase 2 project to the Australian Army. It will also draw on a supply network across Australia to deliver products and services from local industry into Rheinmetall’s Global Supply Chain.”

ICN is working with Rheinmetall to maximise local opportunities at the MILVEHCOE facility itself, as well as for the LAND 400 Phase 2 program, which will see Rheinmetall deliver 211 8x8 Boxer Combat Reconnaissance Vehicles (CRV) to the Australian Army. 

As part of their commitment to local industry, Rheinmetall will transfer technological know-how and provide training support to Australian industry.

This will help local suppliers build capabilities for the LAND 400 Phase 2 Acquisition Program, provide an Australian-based support for the Australian war fighter, and create a globally competitive industrial base.

“Rheinmetall has signed agreements with 28 Australian companies – of which 12 have been announced - to supply products and services for the vehicles that make up the early capability delivery. The company is now working with selected SMEs to ensure they have the capability to supply into a global defence program such as Land 400,” Abhiney said.

“Suppliers need to meet rigorous standards to ensure the best quality vehicle to protect the Australian soldier.”

Rheinmetall has also been shortlisted for the LAND 400 Phase 3 program, with the Queensland Government strongly supporting its bid.

Minister for State Development Cameron Dick said that attracting a global defence giant like Rheinmetall to Queensland was a ‘once-in-a-lifetime opportunity’ to drive the expansion of the state’s manufacturing and defence industries.

“While the Commonwealth’s tender evaluations are firmly centred around vehicle capability of which Rheinmetall’s Lynx KF41 is a strong contender, the MILVEHCOE will also be a compelling consideration,” he said.

Both the LAND 400 Phase 2 and Phase 3 projects have been listed on ICN Gateway and local businesses with an interest and capability are encouraged to register for updates.

“Rheinmetall has indicated in a company statement that it plans to draw on a supply network across Australia to deliver products and services from local industry into its global supply chain,” Abhiney said, adding that suppliers should ensure their company details on ICN Gateway are correct and up to date.

Gateway currently has three relevant pages with more information:

Establishing a national military vehicle capability for Australia

Land 400 Phase 2

Land 400 Phase 3