Thales and the Australian Government have signed a decade long contract worth more than AUS$1bn to ensure the manufacture and supply of strategic munitions to the Australian Defence Force (ADF). This contract demonstrates that Australia’s sovereign defence industry is vital to delivering a capability advantage to the ADF and this partnership reinforces the Government’s commitment to maintaining a world leading, competitive and safe domestic munitions manufacturing capability. Thales continues to build long-term relationships with hundreds of Australian suppliers, building the self-reliance and the capability of the country’s manufacturing sector. Thales’s recent supply chain study with AlphaBeta Advisers proved that there is a strong correlation between Sovereign Industry Capability and benefits flowing to Australian suppliers. In 2019, Thales spent AUS$113 million with its Australian suppliers for munitions and small arms, supporting 414 direct jobs in the supply chain.
This contract will enable Thales to secure more than AUS$450m in export and non-ADF orders over the coming ten years. The Group has invested more than AUS$20m in research and development in addition to AUS$25m in capital infrastructure over the last ten years at the Benalla and Mulwala facilities. However, it will invest further to develop new and world leading products for the ADF. Thales employs approximately 650 highly skilled staff between its two Australian Government owned facilities in Benalla and Mulwala. It exports products to 17 countries globally.