The Prime Minister Malcolm Turnbull, Minister for Defence, Senator Marise Payne, and Minister for Industry, Innovation and Science, Christopher Pyne have announced the new Centre for Defence Industry Capability (CDIC) will be headquartered in Adelaide.
The headquarters will both foster and drive innovation in the defence industry right across Australia and open up export opportunities, according to joint press release.
"A key initiative of the 2016 Defence White Paper, the CDIC will bring together the private sector, Defence and AusIndustry to transform the relationship between Defence and industry to help deliver the cutting-edge capability our armed forces require."
The news was met positively by defence industry, with prime contractor BAE Systems Australia welcoming the announcement "so soon after the release of the Defence Industry Policy Statement".
“With more than 1,700 Australian small and medium businesses in our supply chain, efficient and effective industry capability development programs are vital to the success of our current and future defence projects," BAE Systems Australia CEO Glynn Phillips said.
“The CDIC will provide the confidence and support needed for the industry to grow, to invest in research and development and maximise their involvement in future opportunities."
The government regards the Centre as a 10-year, $230 million investment that will create more jobs and drive growth in Adelaide and across the country.
"The CDIC will work with SMEs across Australia to promote defence industry competitiveness and guide the priorities across defence industry. The Centre will also offer a range of advisory services including mentoring, defence market access, export facilitation and global supply chain development," the official release stated.
"The Turnbull Government recognises that Australia’s defence industry’s capacity for innovation will be vital to maintain a world-class Defence Force."
In addition to its Adelaide headquarters, the Centre will have a network of advisors in key locations across Australia to engage directly with industry. Led by an advisory board comprising senior members of industry and Defence, the CDIC will commence operations in the second half of 2016 and receive $230 million in funding over the next decade.
To find out more about the CDIC visit www.business.gov.au/CDIC