The new partnership will enable the two companies to jointly manufacture and transfer technology for a wide range of critical munitions products, supporting the growth of Australia’s Sovereign Industrial Capability.
With the agreement, Thales Australia will operate as part of the GD-OTS’s international supply chain.
This will help support additional exports of a wide variety of munitions from Australia into the US, thereby supporting the Australian Government’s goal of becoming one among the top ten defence exporters across the globe.
Australian Defence Industry Minister Christopher Pyne said: “Also covering medium calibre, mortar, tank and artillery ammunition, this agreement demonstrates a comprehensive, strategic approach to meeting the needs of the ADF and could progress to include manufacturing the bombs for our region’s Joint Strike Fighters.
“Thales Australia’s commitment to Australian industry marked in this agreement will ensure the company, and their small and medium-sized enterprises (SMEs) in its supply chain, are well equipped to continue manufacturing propellants, munitions, ammunition and small arms that provide Australian soldiers with a warfighting advantage.”
The partnership will boost the country’s industrial capability in munitions and small arms research, design, development, production and generating economic benefit along its supply chain through potential export opportunities, Pyne further said.
Pyne noted: “The Australian Government is maximising its $200bn investment over the next ten years in defence capability in Australia – the largest in our peacetime history – and it is encouraging companies like Thales Australia are choosing to invest in Australia.”