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Victoria: Providing Complete Capability Land
Victorian government vision defence industry
The Victorian Government’s vision is for an innovative, globally competitive, highly skilled and adaptive defence industry
that grows its position at the leading edge of providers serving the ADF and global supply chains.
The Victorian Government will work with the defence industry to ensure it is:
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responsive to changing global demands
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developing and sustaining a highly-skilled, agile workforce
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export focussed, effectively integrating into global supply chains
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attracting and retaining strategic investment
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investing in and commercialising new technologies, innovation and world-class productivity practice
Why Victoria, Australia
Victoria is home to 20 per cent of the national APS defence workforce, the largest outside the Australian Capital Territory,
and 10 per cent of the country’s permanent Australian Defence Force (ADF) personnel.
Its protected geographic location on the south eastern edge of the Australian continent and historical strength at the centre
of Australia’s advanced manufacturing industry has complemented the ADF’s strategic need to design, manufacture and
deliver world-class, innovative capabilities to competitively equip and train the nation’s military forces.
The strong defence APS presence in Victoria has been attracted by the state’s internationally competitive defence industry,
highly skilled workforce, and world-class research and development (R&D) institutes, focussed on developing high performance and specialised products to create and sustain capability advantage for the ADF.
A commitment to innovation and active collaboration through networks and global supply chains has delivered competitive
and diverse industry capabilities to equip and sustain the ADF domains of Land and Vehicles, Maritime, Aerospace,
Electronic Systems, and Weapons and Munitions.
Victoria is recognised as the:
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lead Australian state for military vehicle design, manufacture, assembly and integration
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lead Australian state for the Joint Strike Fighter (JSF) global supply chain work
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centre for naval shipbuilding, systems design, engineering and through-life-support
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lead national manufacturer of ballistic munitions and explosives
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major centre for ballistic protection for personnel, vehicles, aircraft and naval vessels
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leader in complex system design, development, integration and support
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national hub for R&D of emerging defence-related technologies, including advanced composites, simulation,
autonomous systems, and ICT
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provider of world-class testing facilities for new defence technologies
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prime location for training of ADF personnel and military trade skills
Victorian industry also provides garrison support services to significant defence facilities
and bases for the Army, Navy and Airforce, including:
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Victoria Barracks, Melbourne
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Simpson Barracks, Watsonia
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Bandiana Joint Logistics Unit
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RAAF Base Williams
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RAAF Base East Sale
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HMAS Cerberus
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DSTO, Fishermans Bend
Victoria offers world-class, dedicated military training and testing areas at:
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Puckapunyal Training Area
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Albury-Wodonga Military Area
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Proof and Experimental Establishment (P&EE), Graytown
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Monegeetta Proving Grounds
This significant defence presence and military capability design, development and manufacturing capacity, combined with
the state’s stable economy, skilled workforce and desirable lifestyle, has attracted international companies with defence
capabilities to base either their headquarters or significant operations within Victoria. These global capabilities, integrat ed
with Victoria’s strong design, technology and manufacturing capabilities, positio n the state as Australia’s innovation,
knowledge and technology powerhouse to equip and sustain competitive ADF operations in complex, changing
environments.
INFOGRAPHIC
Victoria’s defence landscape
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Victoria’s military vehicle sector accounts for 23 per cent of gross revenue across Victoria’s
defence industry sector (2012)
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National leader in DMO Global Supply Chain program, winning 50% of Australian contracts
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$357million
World class military training and testing areas
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Puckapunyal Training Area
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Albury-Wodonga Military Area
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Proof and Experimental Establishment (P&EE), Graytown
Monegeetta Proving Grounds Significant defence facilities and bases for Army, Navy and Airforce
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Victoria Barracks, Melbourne
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Simpson Barracks, Watsonia
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Bandiana Joint Logistics Unit Victoria
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RAAF Base Williams
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RAAF Base East Sale
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HMAS Cerberus
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DSTO, Fishermans Bend
Victoria’s land capabilities are part of the state’s globally integrated & Internationally competitive defence sector with... $1.5
Billion annual turnover directly employing around 6 thousand people
Providing complete capability – land
Right here in Victoria our companies are developing world-class defence equipment and world leading
innovations and technologies.
Our dynamic and thriving industry supply a range of vital
LAND capabilities including:
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design, manufacture, assembly, modification, repair and export of high technology military vehicles
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ballistic protection for personnel and vehicles
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communications and control systems
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combat clothing and personal load
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carrying equipment
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design and manufacture of munitions
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complex systems development and integration
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military training and support services
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autonomous systems design and development
Examples of the diverse range of globally competitive companies located in Victoria with
Defence LAND capabilities include:
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Thales Australia
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Supacat
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Mercedes-Benz
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Elbit Systems
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BAE Systems Australia
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Tectonica Australia
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GPSat Systems Australia
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Bauer Engineering
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Clark Masts
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Faraday
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Marand
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Sypaq
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Cummins South Pacific
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MEMKO
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Noventus
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PHM Technologies
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Marshall Land Systems Australia
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RPC Technologies
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Electromold
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Motec
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Australian Defence Apparel
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Bruck Textiles
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Pacific Brands Workwear Group
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Platypus Outdoors Group
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Able Industries
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IDES
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A W Bell
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SEM Fire & Rescue
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YTEK
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Pennant Australasia
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SRX Global
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Cablex
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Trimcast Pelican
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Hofmann Engineering
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Transfield
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GHD
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Thiess
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Ronson Gears
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Chemring
PILLAR ONE: Competitive & experienced industry
PILLAR TWO: Highly skilled workforce
PILLAR THREE: Strategic facilities & infrastructure
PILLAR FOUR: Research & development
Pillar one: Competitive and experienced industry
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Victoria is a competitive and dynamic business environment. Our defence industry, comprised of over 300 businesses, has
an annual turnover of around $1.5 billion and directly employs around 6,000 people in the manufacture of equipment and
provision of services to support national and international defence activities.
Our expertise extends across the state from Melbourne’s suburbs including Dandenong, Bayswater and Broadmeadows, to
the regional centres of Geelong and Bendigo and the border towns of Albury/Wodonga. This integrated network of industry
capability forms an experienced supply chain that spans the state and is intertwined with the leading global defence primes.
For example, Victorian industry, Primes and SMEs, currently support a range of active
and emerging military vehicle projects within the state.
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Thales Australia builds and exports Bushmaster vehicles from their Bendigo facilities, and is well advanced in the
delivery of Hawkei to the ADF
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Mercedes-Benz supply military G-wagons to the ADF through their Mulgrave facility, where modifications are made
to the German manufactured vehicles for Australian bush conditions.
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Supacat deliver advanced design and engineering solutions from a Port Melbourne base on JOINT PROJECT 2097
Phase 1B REDFIN to supply new Special Operations Vehicles to the Australi an Defence Force
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Elbit Systems Australia, the prime systems integrator for battle management systems onto military vehicle
platforms, is headquartered in Melbourne
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Rheinmetall MAN Military Vehicles Australia has an office in Melbourne from which it coordi nates the delivery of its
military logistic vehicle systems program under LAND 121 3B
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The extensive industry supply chain across Victoria, from suburbs such as Dandenong, Bayswater and
Broadmeadows, to the regional centres of Geelong and Bendigo, and the border towns of Albury/Wodonga
collaboratively support not only military vehicle projects based in Victoria, but also interstate projects such as
General Dynamics’ operations in South Australia, including the current refit of ASLAVs and M113s in Albury Wodonga
Victorian industry’s experience and demonstrated success in supporting a developing range of active military vehicle
projects strongly positions the state as a cost effective, complete capability base for new military vehicle projects such as
LAND 400 and other international military vehicle programs.
Case study: Supacat
A market leader in the development of high-mobility vehicles, Supacat has been operating in Australia since 2012. The
company expanded its base of operations from the UK to Port Melbourne, taking advantage of Victoria’s unique offerings:
skilled people and proximity to LAND systems.
Victoria is the first location outside the United Kingdom where Supacat provides complete in -country support from prototype
design right through to spares and maintenance.
“Around 75 per cent of our staff are from Victoria,” Michael Halloran, Supacat’s Managing Director, says. “Victoria has a
wide skill base with the professional qualifications we needed in engineering. Victoria’s universities produc e exceptional
graduates and we have recruited directly from RMIT, Monash and Melbourne Uni.”
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Around 80 per cent of the company’s Victorian operations relate to the defence industry. Recent innovations include the
Special Operations Vehicle – Commando for the Australian Defence Materiel Organisation’s REDFIN 1B program. Working
through the concept, prototype and production phases, Supacat produced a vehicle that combines enhanced crew
protection and vehicle versatility with firepower.
Development of a prototype takes around 18 months from the concept to the test track, with 12 months additional testing.
Access to world-class engineers and testing systems like the Monegeetta Proving Ground underpins the development of a
successful product. Supacat draws on local understanding of how their products will be used, bringing in an Australian
perspective to every phase of development. From its Victorian base Supacat is expanding its export market, taking its
products into the Asia Pacific region.
Pillar two: Highly skilled workforce
The availability of a highly skilled, dynamic workforce is vital to generating and sustaining a competitive capability edge f or
the defence industry.
Victoria is home to 10 world-class universities including Australia’s leading University, the University
of Melbourne, delivering leading edge research expertise and infrastructure. This provides an industry -focussed and
responsive vocational training and skills sector which positions the state to meet the skills development and training needs
of the defence industry – now and into the future.
Victorians are highly educated. We have nurtured four Nobel prize winners and have Australia’s largest share of university
graduates, with two out of three Victorians holding a post-secondary qualification, and one in three a university degree. The
depth and breadth of Victoria’s workforce also includes Australia’s largest share of science, engineering an d IT graduates,
along with one of the highest Vocational Education and Training (VET) participation rates in the nation.
An extensive range of professional and technical training relevant to the defence industry is on offer within both Melbourne
and regional university and VET campuses.
Melbourne is consistently named the most liveable city in the world, with high international rankings for stability,
infrastructure, healthcare, culture and environment. Melbourne is culturally diverse and globally connected: there are almost
five million residents in Melbourne - 30 per cent of which speak a language other than English at home and contribute vital
skills to the Victorian economy. Victoria’s outstanding quality of life, AAA rated economy with a stable outlook, and
international community means recruiting and retaining talented professionals is easy.
Case study: Elbit Systems
Elbit Systems of Australia Pty. Ltd. (ELSA) is an example of Victorian expertise playing a major role in a global facing
enterprise.
The company specialises in aerospace, land and naval systems, command, control, communications, computers and
intelligence surveillance. It has operated in Australia since 2010, equipping around 1000 Australian military vehicles
in that period.
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Working with the Australian Defence Force, Elbit has embarked on LAND 200, a 10-year program that will see every
Australian military platform, soldier and ship connected through a centralised command network.
Around 75 per cent of the company’s Melbourne operations involve adapting complex overseas systems to Australian
vehicles. With the highest concentration of Australia’s engineers based in Melbourne and Victoria, the legacy of the state’s
world-class education systems and automotive industry, Melbourne was the logical choice for the company’s Australian
arm. Adam Silvester, Senior Communications Engineer with Elbit Land Systems Australia (ELSA), joined the company two
years ago after a career beginning as a graduate engineer with the Defence Materiel Or ganisation (DMO). His work with the
DMO saw him as the interface between the Defence Force and private industry for more than 10 years, giving him a unique
perspective into both sides of the collaborative process.
Adam’s Elbit team is developing the new generation of battlefield management systems (BMS) as part of LAND 200. This
work will provide greater situational awareness for army vehicles and soldiers on the ground through a common operational
picture.
The system places ruggedised IT equipment, nodes and software in enhanced technical computers (ETC).
The ETCs are loaded with maps of the local terrain and overlayed with details of friendly forces and potential enemy
locations. “It gives a more complete and immediate understanding of the areas,” Adam explains. “Each part of the network
knows where the other is, leading to better command decisions.”
Adam has seen first-hand how the collaboration between Victorian based systems companies and defence agencies is
delivering new innovations. “A recent project with the DMO and DSTO has been developing computational electromagnetic
modeling for safety evaluation of installed BMSs. In the past evaluation was solely done by testing, but working together
we’ve been able to conduct more comprehensive analysis of radiation hazards.”
Pauline Albouy, Elbit’s Verification and Validation Manager, has seen the company grow significantly in the 18 months she
has worked with them. “We are competing against very big companies on an equal footing,” she says. “Our faciliti es here,
like the radio frequency and emissions chamber at Keilor Park, allow us to conduct testing on hardware communication
systems and complete C4I equipped armoured vehicles.”
Pillar three: Facilities and infrastructure
Victoria offers world-class military vehicle design and prototype testing facilities at Monegeetta and Graytown, along with
active combat vehicle training facilities at Puckapunyal.
Prototypes for vehicles such as Bushmaster, Hawkei and Special Operations vehicles to be delivered fro m Project Redfin
have moved through design, test and evaluation activities at these sites. Interstate companies such as General Dynamics
transit vehicles to Victoria to access these state-of-the-art facilities.
Australia’s most famous military training camp, Puckapunyal was founded in 1939 in the heart of Victoria. Today the
Puckapunyal Military Training Area encompasses almost 40,000 hectares and is the primary training centre
for the Australian Army’s combat schools and a significant component of the Australian Army’s logistics training.
Puckapunyal is home to the Combined Arms Training Centre and the Transport Wing of the Army Logistic Training Centre.
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New combat vehicles, such as those forming under LAND 400, within Victoria would have ready access to the premier test
and evaluation facilities at Monegeetta and Graytown, followed by Puckapunyal’s dedicated combat training facilities, once
the vehicles are delivered into service.
Defence Materiel Organisation’s (DMO’s) Land Systems Division is headquart ered in Melbourne, making Melbourne the
“home” of LAND systems for the Department of Defence. More widely, the DMO manages
about 180 major capital equipment projects, more than 50 minor projects and also sustains and upgrades over 100 existing
fleets.
Its relationships with industry suppliers are vital for the ADF’s ability to procure the equipment and services on time, on
budget, and to the required levels of capability, survivability and operability. Accessibility to the DMO’s Land Systems
Division is a critical capability edge for Victoria.
Victoria provides access to domestic and global markets through an excellent infrastructure network. Melbourne airport,
Australia’s largest curfew-free freight and passenger airport, is open for business 24 hours a day, seven days a week contributing to its position as one of Australia’s major transport, manufacturing and service industry hubs. Avalon airport,
located 55 kilometres west of Melbourne’s CBD, offers a second curfew-free airport business and passenger operations
within Victoria. The Port of Melbourne is Australia’s largest and busiest container sea -port, handling nearly 40 per cent of
the nation’s container trade.
Pillar four: Research and development
Victoria is home to 10 universities including Australia’s leading University ranked in the world’s top 50. We also have
globally connected research institutes and a number of technology parks and innovation precincts. Victoria’s defence
industry is a significant contributor to global innovation because of its strong focus on driving, developing and collaborating
on R&D, and adopting emerging technologies from commercial markets. This enables Victoria to sustain its competitive
military capability edge. This advantage, coupled with Victoria’s long and rich tradition of world-class R&D, makes the state
a heartland of Australia’s knowledge, innovation and technology capital. That’s why many of the world’s leading technology
and manufacturing industry participants establish R&D operations in Victoria.
Nationally significant defence industry institutions are also based in Victoria. For example, the Defence Materials
Technology Centre (DMTC), the Defence Science and Technology Organisation (DSTO), the Defence Science Institute
(DSI), the Commonwealth Scientific and Research Organisation, the Advanced Composites Cooperative Research Centre
with world-class R&D capabilities are at home in Melbourne.
The DSI is a leading example of acclaimed research providers joining forces to create world leading results. The Inst itute is
a joint initiative of the DSTO and the University of Melbourne, supported by the Victorian Government. The DSI’s cross
disciplinary research solves complex and long-term challenges for the Australian Defence Force. The DSI is a gateway to
Victoria’s broader research ecosystem through formal partnerships with other universities and research institutes.
The Victorian Centre for Advanced Materials Manufacturing (VCAMM) partners with leading R&D organisations including
Latrobe University, Deakin University, Monash University, Swinburne University of Technology and the DMTC, to build
Australia’s capabilities in advanced materials and manufacturing industries. The development of Carbon Nexus and the
Australian Future Fibre Research and Innovation Centre in Geelong are examples of initiatives for, new advanced carbon
fibre capabilities in Australia.
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Access to a workforce capable of driving innovation and R&D is essential for economic growth and to sustain a competitive
ADF and Australian defence industry. Victoria is pushing technological boundaries through collaboration across industry,
education and research. Partnerships between Victorian industry, research organisations and universities are developing
and commercialising high-performance, specialised military products. Victoria is harnessing the talents of our academics
and researchers to accelerate innovations for real-world application.
Case study: Bushmaster, Thales
Over a decade ago, Australian troops realised they were facing a significant threat in combat areas due to the increasing
sophistication of roadside bombs.
A new type of armoured vehicle was needed to transport Australian troops more safely in hostile and dangerous
environments, one that would not tip over from the impact of mine blasts and endanger the lives of its occupants.
After more than 10 years of prototype development and testing, predominantly in Victoria, the unique Bushmaster is a world
leader in vehicle protection. Deployed in East Timor, Iraq and Afghanistan, the Australia n Defence Force’s Bushmaster has
been involved in more than 50 direct strikes without a single loss of personnel.
“Thales developed a design with increased vehicle height to decrease blast force from mines,” says Warwick Strachan, Vice
President for Thales Protected Vehicles. “Unlike other vehicles in its class, the Bushmaster has a unique deep ‘v’ shape
for the bottom of the vehicle that deflects the blast force, heat and debris from the troops inside the vehicle.”
Following its successful deployment in Iraq and Afghanistan, feedback on the Bushmaster’s performance was used to adapt
and upgrade its capabilities. Each new upgrade saves Australian soldiers’ lives from roadside bombs, rocket -propelled
grenades and small arms attacks.
Primary features include a high level of road mobility, greater ballistic protection for the driveline, and internal capacity to
carry up to 10 personnel, which is more than other vehicles in its class. Its reliability for troop and mortar deployments ha s
seen it adapted for ambulance service in the field, saving the lives of even more Australian troops.
“Bushmaster’s journey from prototype to final production began in the mid 1990s and took more than 10 years,” Warwick
Strachan says. “Thales’s Bendigo facility has a long history as a heavy fabrication operation dating back to World War II.
Victoria’s expert pool of automotive engineers offers a strong base for mechanical, electrical and electronic engine ering.
More than 100 suppliers were involved in the vehicle’s production, with the majority based in Victoria.”
This expertise extended to testing facilities, with three prototype vehicles tested over operational terrain for 45,000kms,
standing in for desert and alpine conditions. In addition to testing grounds at Monegeett a, commercial proving grounds at
Anglesea allow Thales to conduct its own testing of vehicles independent of the Army.
As a direct result of Bushmaster’s proven reliability on the battlefield, the Australian Defence Force expanded its initial
order from 370 to 1050 vehicles. It has also been sold to the Netherlands, Jamaica, Japan and Indonesia.
The next generation of vehicles builds on Bushmaster’s strong foundation. Thales is now testing its Hawkei vehicle, a
seven-tonne, highly mobile and protected vehicle, with in-built systems to allow it to be used as a fighting platform. Putting
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it through its paces includes 150,000kms of continual testing on tracks and over terrain. “Australia is now a world leader in
protected vehicles, with an advanced capability founded on local requirements that delivers global appeal.”
Land military vehicles
With a proud history and position as Australia’s powerhouse
for advanced manufacturing, Victoria is the ideal Australian location to deliver a competitive and continuous build and
sustainment program for the design, production, export and maintenance
of military vehicles.
Competitive strengths include:
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world-class military vehicle prototype testing facilities at Monegeetta Proving Ground and blast testing facilities
at P&EE, Graytown
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strategic proximity to infrastructure, training areas and facilities for military combat and armoured vehicle training
at Puckapunyal Training Area
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a critical mass of Victorian-based global Prime Contractors with military vehicle and associated advanced
technology and systems integration capabilities
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an internationally competitive, innovative industry supply chain with demonstrated capacity to design, assemble,
integrate and deliver military vehicles, such as the Bushmaster, to the ADF and global export markets
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close proximity to the Defence Materiel Organisation (DMO) Land Systems Division (LSD) within Victoria Barracks,
Melbourne, where the majority of Army’s major equipment acquisition and sustainment programs are managed
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transitioning advanced prototype design development and engineering skills from Victoria’s automotive industry
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opportunity to leverage existing infrastructure and experienced Prime Contractor/industry supply chain capabilities
supporting active military vehicle production projects in Victoria to create a continuous program of work
assembling, integrating, and delivering military vehicles
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collaborative partnerships between Victorian industry, research organisations and universit ies focussing on
developing and commercialising high performance, specialised products for defence
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a world-class education system, with training facilities to support future technologies and skills development
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a demonstrated commitment to R&D, technology diffusion and commercialisation
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an attractive lifestyle, supporting the recruitment and retention of talented professionals
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a supportive Government, focussed on growing and sustaining an innovative, globally competitive defence industry
Victorian government’s active support
The Victorian Government values the economic contribution defence business makes to the Victorian economy, along with
the role the state’s industry plays in delivering competitive capabilities to the Austr alian Defence Force and global supply
chains.
The Victorian Government’s vision is for an innovative, globally competitive, highly skilled and adaptive defence industry
that grows its position at the leading edge of providers serving the ADF and global supply chains. The Victor ian
Government actively supports the state’s defence industry through:
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targeted investment advocacy to promote Victoria as a competitive location for major defence Prime Contractors
and projects
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facilitation of global collaboration by linking Victorian industry into international defence supply chains
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promotion of Victorian industry capabilities within domestic and international defence trade shows
and missions
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provision of information to industry on defence market opportunities and procurement processes
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encouraging R&D through support for innovation and facilitation of supporting infrastructure and new technologies

developing a highly skilled workforce

facilitating of effective stakeholder engagement across the Victorian defence industry to develop teams o f SMEs
with the capacity and agility to target defence market opportunities

industry support programs to help companies to improve productivity and competitiveness in global markets
A key part of our commitment to the state’s defence industry is the vital strategic guidance and advocacy provided by the
Government appointed Defence Council – Victoria. The Council plays an important role advising on defence industry issues
and is a great asset for both the Government and industry for identifying and capitalis ing on opportunities
for defence businesses.
The Victorian Government, through its Defence Industry Unit (DIU) in the Department of state Development, Business and
Innovation (DSDBI), will continue to work closely with Defence and the defence industry t o identify and support strategic
industry capability requirements, including domestic and international military
vehicle projects.
This publication has been prepared for general information only.
Readers should seek further advice before acting on the information provided.
Copyright state of Victoria 2014. This publication is copyright. No part may be produced by
any process except in accordance with the provisions of the Copyright Act 1098.
Authorised by the Victorian Government Department of state Development, Business and Innovation
121 Exhibition Street, Melbourne VIC 3000
PO Box 4509, Melbourne VIC 3001
Print managed by Finsbury Green
Back page
Defence Industry Unit
Department of State Development,
Business and Innovation
Phone: 03 9651 9311
Email: defence@dsdbi.vic.gov.au
Web: www.dsdbi.vic.gov.au/defence
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