Hanwha, Victoria sign MOU to develop production hub

The Australian state government of Victoria has signed an agreement with Hanwha Defense Australia (HDA) in support of the company’s pledge to develop a defence manufacturing hub in the city of Geelong, near Melbourne.

Collaboration under the new memorandum of understanding (MOU) supports a bid by HDA – a subsidiary of South Korea’s Hanwha Defense – to win a deal to supply its Redback infantry fighting vehicle (IFV) to the Australian Army under the programme Land 400 Phase 3.

If HDA is successful in this bid it will build the vehicles at the new facility. In addition, HDA is looking to build at the new facility 30 K9 155 mm self-propelled howitzers and 15 K10 armoured ammunition resupply vehicles (AARVs) for the Australian Army. HDA was named at preferred supplier for this contract, which is worth AUD1.3 billion (USD1 billion), in September.

In a statement, the Victorian state government said that it is “backing HDA to build and maintain Australian military vehicles in Geelong, in a move that stands to create hundreds of highly skilled local jobs”. It said the MoU “formalises a long-term partnership” between the two parties that will support the development of the new facility.

The state government said the MOU will also enable the two sides to explore investment opportunities in defence and non-defence sectors and support expanded bilateral trade and investment opportunities between Victoria and South Korea.