Australian state launches campaign to secure 15-bln-USD defense contract

Source: Xinhua| 2017-07-20 09:35:53|Editor: Zhou Xin
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MELBOURNE, July 20 (Xinhua) -- Australian government members from Victoria have launched an ambitious bid to secure a 15-billion-U.S. dollar defense bill for their home state, it was revealed on Thursday.

Every Victorian Member of Parliament (MP) in Prime Minister Malcolm Turnbull's government on Thursday sent a letter to BAE Systems, a British defense contractor, asking them to choose Victoria as the place to build a fleet of war machines being ordered by Turnbull.

Turnbull will choose between Victoria and BEA or Queensland, who is aligned with German contractor Rheinmetall, early in 2018.

As many as 225 lethal combat vehicles will be built in the first stage of the contract, worth 3.97 billion U.S. dollars, creating 200 jobs in the construction and 2,000 in the supply chain.

The state chosen to build the vehicles in the first stage will be the favorite to land the "LAND 400" 11-billion-U.S. dollar contract whereby hundreds more vehicles will be constructed.

The letter to BAE from the MPs said the project was of "critical importance" to Victoria's economy.

"Given our state's breadth of skills and workforce capacity which are unmatched by any other state, as well as our manufacturing and transport infrastructure, we believe Victoria is best placed to become the home of LAND 400," the letter said.

BAE has already secured agreements worth 150 million U.S. dollars with local manufacturers should Victoria's bid be successful while Rheinmetall announced in July it would partner with Queensland.

"With our outstanding track record in the design, development and manufacture of military vehicles for Australian and overseas customers - Victoria has the experience, expertise and supply chain to deliver the LAND 400 project," Wade Noonan, Victoria's industry minister, told local media on Thursday.

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