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Highlights
- The Morrison Government has announced an allocation of AU$1.2million for the Defence industry.
- The move is likely to encourage the export capability of six Australian businesses involved in manufacturing defence-related equipment.
- The Australian Strategic Policy Institute has estimated robust spending by Australia in the next 20 years on missile and guided weapons purchases.
In an initiative to boost the Country’s Defence manufacturing sector, the Morrison Government has announced an allocation of AU$1.2 million for the Defence industry. The move is likely to encourage the export capability of six Australian businesses involved in manufacturing defence-related equipment. Minister of Defence Industry Melissa Price has said that these businesses that develop some of the most innovative and world-leading Defence capabilities are the backbone of Australia’s industrial base.
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According to Ms Price, the said businesses deal with procuring new specialist components, manufacturing engines for unmanned aerial vehicles, or making new static targets for international customers. Thus, these businesses are expanding into global markets, creating local jobs and empowering the sovereign industrial base on which Defence depends.
The AU$1.2 million funding aligns with the federal government’s commitment to boosting Australia’s sovereign defence sector.
The Federal government earlier announced that it will expedite the formation of AU$1 billion Sovereign Guided Weapons Enterprise, which will boost skilled jobs and help obtain Australia’s sovereign defence capabilities.
Last year, Prime Minister Scott Morrison had said that Australia would boost defence spending by 40% over the next ten years. The Morrison government has also focused on the “Make in Australia” approach as part of its policy initiative.
Which all small businesses have received this funding?
Western Australia based Orbital Corporation has received AU$195,624. The company will use the fund to expand its manufacturing expertise for flight componentry for tactical unmanned aerial vehicles and propulsion systems, to bridge the growing global export market demand.
In addition, the Brisbane-based business, Gaardtech, will use its grant of $166,000 to buy new equipment and increase its dedicated fabrication capabilities. The equipment thus acquired will allow Gaardtech to increase its ability to meet further demand for international exports.
The other four include Trakka Corp, JTM Gaskets, Electro Cad Australia, and Repetition Engineering (trading as Challenge Engineering). They will be receiving grants worth AU$193,192, AU$211,260, AU$240,000 and AU$240,000, respectively.
Furthermore, Trakka Corp is expected to use its AU$193,192 grant to buy specialist equipment to operate in-house environmental stress screening for self-produced components.
JTM Gaskets in South Australia will use the allocated amount to buy new equipment, allowing it to produce a higher volume of products and expand into new export markets.
Also, in South Australia, Electro Cad Australia will utilize its grant of AU$240,000 to install a dedicated clean room, and purchase new equipment to manufacture complex Defence components, growing export orders with international defence companies. Repetition Engineering which trades as Challenge Engineering will use the grant to purchase specialist machinery and manufacture new machined components for export.
Bottom-line
Australia’s defence industry boasts of enormous capability in the domain of weapons technology. Investment in the defence industry will drive innovation and skills within the defence supply chain, creating a win-win situation for all the stakeholders involved.
