Queensland Boosts Gold Coast Defence Manufacturing

JOINT STATEMENT
  • $1.77 million awarded through the $180.6 million Sovereign Industry Development Fund (SIDF) for two Gold Coast defence manufacturing opportunities.
  • Victorian-based business Arkeus lured to Queensland to open a new high-tech manufacturing facility to expand production of autonomous optical sensors for defence drones as well as Rhino Linings to start local production of protective coatings for military vehicle fuel tanks.
  • SIDF accelerating the growth of the Defence, Biomedical and Biofuels industries and building sovereign capability in Queensland after a decade of decline under Labor.

The Crisafulli Government has awarded a total of $1.77 million through the flagship $180.6 million Sovereign Industries Development Fund (SIDF) so two Gold Coast manufacturers can expand advanced manufacturing capability and strengthen supply to the military.

Victorian-based technology company Arkeus has been lured to Queensland and will receive $1.48 million to establish an advanced manufacturing facility on the Gold Coast where it will produce AI-powered optical radars that give drones the ability to see, understand and react.

The facility is expected to be operational by late-2027, will create 59 jobs, including 46 ongoing operational jobs, and represents the migration of Arkeus' entire manufacturing capacity to Queensland.

Rhino Linings will receive $285,000 to help install new defence-grade equipment that will, for the first time, allow local Australian production of BattleJacket coatings to protect military fuel tanks and vehicles against ballistic penetration and blast damage.

Equipment will start being installed for the project later this year, with the new facility to be complete by mid-2027.

SIDF is revitalising Queensland's industrial base by funding projects that help build a stronger, more resilient Queensland economy, attract private investment and secure long-term jobs and economic growth.

Through SIDF, the Crisafulli Government is strengthening defence industry capability by supporting projects that expand manufacturing, sustainment, testing and support services, and build more resilient sovereign supply chains aligned with Australia's long‑term defence needs.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the Crisafulli Government was backing projects that would deliver real opportunities for Queensland's sovereign industries, rather than the thought bubbles of the former Labor Government.

"Queensland has a critical role to play in supporting Australia's defence capability, and these investments will strengthen local manufacturing, sovereign supply chains and industrial capability to ensure our State is ready to meet that challenge," the Deputy Premier said.

"After a decade of decline under Labor, Queensland can't afford more talk and missed opportunities and the Crisafulli Government is backing investment-ready projects that will strengthen Queensland's sovereign industries, create skilled jobs and deliver long-term economic growth.

"Unlike Labor, we're investing in projects that are ready to proceed and will deliver real outcomes for Queenslanders, not more thought bubbles or glossy brochures.

Minister for Finance, Trade, Employment and Training Ros Bates said the SIDF announcement reinforced the recent $25 million investment in Arkeus, led by Queensland Investment Corporation.

"The Crisafulli Government lured Arkeus' advanced manufacturing to Queensland from Victoria, which will deliver highly skilled jobs and boost sovereign capability," Minister Bates said.

"After Labor's decade of decline, we've sent the message loud and clear that Queensland is back open for business and this is another example of a cutting-edge company seeing the sunshine and realising Queensland is the place to be."

Member for Coomera Michael Crandon said the Crisafulli Government was investing in businesses that were delivering for Queensland, creating jobs and building industries that would underpin the state's economy for decades to come.

"Backing local manufacturers to expand their capability means more skilled jobs for Gold Coast workers, greater opportunities for local suppliers and a stronger economy for our community," Mr Crandon said.

"We're focused on practical investments that support local businesses to grow and ensure Queensland remains a leader in sovereign manufacturing and defence capability."

Member for Southport Rob Molhoek said the Gold Coast was home to innovative manufacturers and defence businesses that were helping build Queensland's sovereign industrial capability, and this investment would help them take the next step.

"The Crisafulli Government is backing local businesses that are creating skilled jobs, investing in new technology and delivering real economic opportunities for the Gold Coast," Mr Molhoek said.

"This funding will help businesses grow, employ more locals and strengthen the Gold Coast's reputation as a centre for advanced manufacturing and defence innovation."

Arkeus Chief Executive Officer Simon Olsen said the new facility would be the company's Australian manufacturing hub and deliver a 20-fold increase in manufacturing capacity.

"Arkeus is just getting started on the possibilities for defence technology that can help drones and other uncrewed craft to see, understand and act," Mr Olsen said.

"Thanks to SIDF, we can establish an advanced manufacturing facility on the Gold Coast that will include new production and repair capabilities for our specialised AI-powered optical sensors.

"Our new Ormeau facility will allow us to significantly scale manufacturing, meet growing demand from Australian and U.S. defence agencies, and support the next stage of Arkeus' growth.

"We see enormous opportunities to strengthen Queensland's sovereign capabilities in advanced manufacturing for the defence sector, to grow export markets, and create skilled local jobs."

Rhino Linings Australasia General Manager Peter Morgan said that up until now the BattleJacket coatings had to be sourced from the United States.

"With the support of SIDF we're acquiring the equipment needed to produce BattleJacket at our Molendinar facility," Mr Morgan said.

"Our main target market is defence force use here in Australia but there's also the potential for export, particularly to Asia.

"The coatings have great potential as a solution for fuel tank damage in military vehicles because, if there's a breach, the product reacts with fuel to immediately 'self-heal' resulting in no hole, loss of fuel or explosion risk.

"Rhino already makes linings and coatings that protect military transport like helicopters and personnel carriers so this is a great opportunity to expand supply."

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