Defence Signs Air Expendable Stores Contract

Greg Combet, Parliamentary Secretary for Defence Procurement, today announced that Defence has agreed to enter into a long-term agreement with Chemring Australia Pty Ltd for the in-country manufacture of pyrotechnics and air-expendable stores such as flares and chaff, deployed from military aircraft.>> Through the long-term contract arrangement, valued at approximately $160 million over 10 years, Chemring will invest approximately $18 million in plant and equipment at its facility in Lara, Victoria, to deliver leading edge technology tailored to meet the stringent requirements of Defence, Mr Combet said.>> The contract reinforces Chemring Australias role as a key element of the National Support Base supplying munitions to Defence, and will provide ongoing employment for approximately 40 additional skilled workers.>> Establishing an in-country manufacturing facility enables Chemring Australia to demonstrate the capability and capacity of Australian manufacturers to supply munitions to the global market.>> In announcing the contract signing, Mr Combet said, the establishment of an in-country manufacturing capability positions Chemring Australia to demonstrate the capacity to manufacture these items for the JSF project and this will allow them to compete for work on the global fleet.>> The long-term contract, under which annual minimum order quantities are guaranteed, assists in smoothing production throughput leading to increased efficiencies in manufacturing. The contract will also lead to a more efficient supply of flares and chaff which are often sourced from offshore, Mr Combet said.