$111 million sustainment contract to boost SA defence hub jobs growth

Department of Defence
  • Joint media release: Minister for Defence Industry, the Hon Melissa Price MP

The Morrison Government has unveiled a $111 million sustainment contract with Raytheon Australia to support the jointly developed Raytheon-Kongsberg National Advanced Surface to Air Missile System (NASAM).

This contract will support the Australian Defence Force’s new Short Range Ground Based Air Defence Capability, part of the LAND 19 Phase 7B program.

The announcement builds on the official opening of Raytheon Australia’s new Centre for Joint Integration in Mawson Lakes, South Australia.

The multi-million dollar investment will create hundreds of new defence industry jobs for generations of Australians.

“The Centre for Joint Integration will contribute to the development of some of Australia’s most important defence capabilities,” Minister Dutton said.

“It will serve as Raytheon’s main site for the manufacture, assembly and systems integration in Australia and will play a pivotal role in supporting and sustaining the new Short Range Ground Based Air Defence Capability.”

The Centre for Joint Integration will also be the primary support facility for the new air defence capability over its 20-year life.

The $111 million support contract will provide the initial five years of sustainment, with an option to extend to the full 20 years.

Minister for Defence Industry Melissa Price said the new contract was part of the Morrison Government’s $270 billion, 10-year boost to Defence and defence industry, creating economy-wide benefits.

“The construction of the Centre for Joint Integration has created 200 construction jobs since the sod was turned in March 2019 and Raytheon expects that a further 300 ongoing jobs across the defence industry will be created by the facility,” Minister Price said.

Support activities for the new air defence capability will begin at the centre in 2022, in preparation for the NASAM’s introduction into service with Army in 2023.

Raytheon expects to provide ongoing employment for at least 35 staff in support of the Short Range Ground Based Air Defence capability.

“We already recognise Raytheon’s outstanding contribution to the Royal Australian Navy’s capabilities in South Australia,” Minister Price said.

“This new facility will not only build on that foundation, but now also deliver and support critical capabilities for the Australian Army.”

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