In what the Government says is the country’s largest single defence export deal, Australia will supply locally-made Rheinmetall Boxer armoured vehicles to Germany.
Under this agreement, more than 100 Boxer Heavy Weapon Carrier vehicles will be built by Rheinmetall at its Military Vehicle Centre of Excellence (MILVEHCOE) in Redbank, Queensland, and exported for use by the German Army.
The German parliament has now approved the project, and the vehicles will be built mainly from components supplied by Germany.
Rheinmetall created MILVEHCOE after winning the contract to supply the Army with 211 Boxer wheeled Combat Reconnaissance Vehicles in five different variants, 25 of which Rheinmetall has already delivered.
Prime Minister Anthony Albanese said that this deal was worth more than $1 billion to the Australian economy.
“The agreement will boost Australia’s sovereign defence industry, secure local jobs and contribute to Australia’s economic growth. This deal secures well-paid jobs in Queensland and across the country,” he said.
Details of the plan were first revealed last year when the PM visited Berlin when he signed an in-principle agreement for Australia to supply vehicles for the German Army's heavy weapon carrier infantry project.
"Following successful conclusion of negotiations, the German Boxer vehicles will be built, utilising production capacity at Rheinmetall's state-of-the-art Military Vehicle Centre of Excellence (MILVEHCOE) at Redbank in South-East Queensland," Rheinmetall said at the time.
However, question marks hung over the deal when the Commonwealth decided Hanwha of South Korea would build the Australian Army’s new tracked infantry fighting vehicles, and not Rheinmetall.
Defence Minister Richard Marles said he was pleased to announce the signing of the biggest defence export agreement in Australia’s history.
“The build and export of Boxer Heavy Weapon Carrier vehicles to the German Army highlights a strengthening of the relationship between our two countries,” he said.
“The Albanese Government is not only committed to bolstering our nation’s growing defence industry, technology and talent, but also supporting ongoing economic prosperity in the region.”
Defence Industry Minister Pat Conroy said this announcement underscored the support and immense effort on the part of the Government in ensuring we have a robust defence industry.
“A strong defence industry is crucial to protecting Australians and their interests. This announcement is also a testament to the hardworking Australians employed in this critical industry,” he said.
“Today’s announcement means more than 600 Australians will secure and stable employment at Rheinmetall’s Military Vehicle Centre of Excellence in Queensland, along with many more throughout our defence industry across the nation.”