South Australia is set to house a new $75 million (US$55 million) state-of-the-art weapons manufacturing facility as the Australian government continues to bolster its sovereign defence capabilities.
The Sovereign Combat System Collaboration Centre will be headed by Saab, a Swedish weapons and defence company, with a focus on integrating world-leading technology into Australia’s combat systems.
The federal government has diverted $22.6 million (US$16.4 million) of its own $1.3 billion (US$950 million) Modern Manufacturing Initiative for the project, a fund designated to boost domestic production across industries.
Defence Industry Minister Melissa Price said the investment represented Australia’s economic growth and commitment to strengthening its defence capabilities.
South Australia’s capital, Adelaide, is already home to Australia’s premier naval shipbuilding facility and is a central hub for numerous precincts devoted to military research, development, and construction.
The project will also see the creation of more than 950 highly-skilled jobs by 2027, along with giving Australia’s small and medium manufacturers access to lucrative national and global defence supply chains.
Minister for Industry Angus Taylor highlighted the important role the opportunity played in developing Australia’s manufacturing businesses.
“We want more Australian businesses to contribute to local and international defence supply chains, and more Australian innovation and intellectual property to be contributed to products supplied to the ADF and other markets,” Taylor said.
“This investment with Saab will enable us to leverage our highly-skilled workforce, and world-leading innovation and manufacturing might to strengthen our combat system capabilities on home soil and unlock new opportunities in some of the world’s most advanced supply chains.”
Taylor pointed out that Australia planned to continue strengthening its place as a key player in its military manufacturing and defence capabilities.
“Keeping Australians safe is one of the Morrison Government’s highest priorities,” Taylor said. “Today’s funding from the Modern Manufacturing Initiative comes on top of the billions of dollars the Government is investing to build our sovereign manufacturing capability in defence.”
Even prior to the Russia-Ukraine conflict, Australia had been accelerating the expansion of its defensive arsenal amid concerns over the last two years that Beijing would attempt to exert its power forward in the Indo-pacific.
This includes a landmark pact with the United States and the United Kingdom to grant Australia access to advanced nuclear submarine technology.
