Family-owned engineering company Bale Defence has secured a contract to deliver 40 tactical off-road vehicles for the Australian Defence Force (ADF).

The $6.16m (A$8.47m) contract will support the company’s ongoing employment of 18 local workers while creating another six new jobs and providing $4.48m (A$6.17m) for the local economy.

Australia Defence Industry Minister Melissa Price said: “The rough terrain vehicle provides an important tactical, light, all-terrain land capability used by the ADF on operations and exercises both in Australia and overseas.

“This contract ensures Australia can continue to manufacture, modernise and enhance this critical capability locally, to meet our defence force’s evolving requirements.

“This contract is an excellent example of the benefits of our defence industry partnerships for both the ADF and Australian businesses.

“Our defence industry partnerships will only continue to grow and strengthen with our government’s $196.4bn (A$270bn) investment in defence capability over the next decade.”

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Price added that Bale Defence provided the first generation of ADF’s rough terrain vehicles.

According to Cowper member Pat Conaghan, the contract with Bale Defence is another example of Australia’s capacity for innovation.

Conaghan said: “We’re an innovative bunch, and to see that ingenuity rewarded like this is fantastic news for our region.

“Huge congratulations to Bale Defence for the recognition of excellence by securing this exciting contract, and I look forward to seeing the project come to fruition.”

Earlier this month, the Australian Department of Defence (DoD) awarded a $2.83m (A$3.8m) contract to local firm Kennelly Constructions for work at Gallipoli Barracks.