Thales Australia has welcomed today’s announcement by the Minister for Defence Industry Melissa Price and the Minister for Veteran’s Affairs Andrew Gee of a new manufacturing partnership between Rheinmetall Defence Australia and Thales Australia. 

Thales Australia and Rheinmetall Defence have signed a contract to manufacture key components for the Rheinmetall MK 30-2 cannon capability in support of the Australian Defence Force Land 400 program.  

Thales Australia’s Lithgow facility in regional New South Wales has commenced manufacturing 30mm Cannon components for Rheinmetall Defence Australia, leveraging the support of 16 current and new Australian SME suppliers. Approximately 50% of the work will be done by these SME suppliers and the overall AIC is already over 85%.  First samples manufactured in Australia have already passed quality control checks by Rheinmetall Defence in Germany. 

For over a century, Lithgow has been the home of small arms manufacturing, proudly supporting Australia’s soldiers on battlefields around the world. This new manufacturing partnership builds on this distinguished heritage, creating approximately 10 new jobs and supporting 130 jobs on site. 

The partnership will also look at transferring to Australia the manufacture and sustainment of a range of mounted weapons, combining Thales Australia’s deep manufacturing expertise and domestic supplier base with Rheinmetall’s world-class mounted weapons.

Through substantial technology transfer to Australia in support of a number of Defence projects, and with an aim of 100% Australian Industry Capability, this partnership will be a significant driver of growth in Australia’s sovereign capability, boosting investment in SMEs, R&D and delivering long-term jobs. 

Thales Australia has built a national industrial ecosystem to support the delivery of capability to the Australian Defence Force. In 2020 alone Thales Australia spent $657m with 1,841 Australian firms, 82% of which were SMEs.  

Thales Australia’s recent supply chain analysis with Accenture demonstrated that there is a substantial economic benefit from domestic defence spending, delivering thousands of jobs through hundreds of business across the nation. 

Increasing Australia’s industrial capability will build Australia’s self-reliance and the capability of the broader Australian advanced manufacturing sector, which is vital to delivering a capability advantage to the Australian Defence Force.

Chris Jenkins, Chief Executive Officer, Thales Australia 

About Thales in Australia 

 Thales Australia is a trusted partner of the Australian Defence Force and is also present in commercial sectors ranging from air traffic management and ground transport systems to security systems and services. Thales Australia employs around 3,800 people directly and supports over 2,051 job along its Australian supply chain. In 2020 Thales Australia spent $657 million with 1,841 Australia suppliers, of which 82% are SMEs.  Since 2018 Thales Australia has spent over $1.9 billion with local Australian businesses.  

Thales Australia has a history of patient investment to build advanced in-country capability across manufacturing, critical systems and services. Close collaborative relationships with local customers, Australian SME suppliers and research institutions combined with technology transfer from our global business enables Thales to tailor high quality solutions for Australian and export markets, generating revenue of $1.6 billion in exports over the past 10 years.