Rheinmetall Defence Australia has opened a facility in the state of Queensland for manufacturing and assembling military vehicles.

The Military Vehicle Centre of Excellence (MILVEHCOE) in Redbank was officially opened by Australian Prime Minister Scott Morrison.

Rheinmetall is set to utilise the centre to build and assemble the majority of Boxer Combat Reconnaissance Vehicles. Australian Army is procuring these reconnaissance vehicles as part of the A$5bn ($3.62bn) LAND 400 Phase 2 project.

Minister for Defence Linda Reynolds said: “As outlined in the 2020 Force Structure Plan, the Boxer will provide enhanced mobility, firepower, protection and situational awareness to our troops.

“They will allow our Australian Defence Force personnel to rapidly deploy, achieve their missions and importantly, return home safely.”

The Redbank site will also be used to integrate, support and repair logistics trucks and modules being delivered under the LAND 121 Phase 3B and 5B projects.

Additionally, Rheinmetall will deliver at least 30 Lance Turrets from MILVEHCOE to the Hungarian Armed Forces.

Prime Minister Morrison said: “This Queensland centre will be where some of the most advanced armoured vehicles in the world will be produced, by Australian workers.

“The MILVEHCOE will create more than 450 long-term jobs and become a national asset for military vehicles.

Rheinmetall is expected to utilise local suppliers for the production of Boxer Combat Reconnaissance Vehicles and training systems, which will support the growth of the Australian defence industry.

Notably, the federal government announced in August an investment of A$1bn ($720m) to boost the local defence industry and expedite the recovery of Covid-19 affected economy.