New grants program targets Hanwha supply chain
26 August 22
The Victorian government has launched a new grants program aimed at supporting local SMEs looking to contribute to Hanwha Defense Australia’s land systems projects.
The Andrews Labor government has unveiled the Victorian Land Systems Fund — a $10 million grants program aimed at supporting local firms looking to join Hanwha Defense Australia’s (HDA) supply chain.
Up to $100,000 would be offered to each eligible applicant in support of bids to support HDA’s $1 billion LAND 8116 Self- Propelled Howitzer program, which involves the delivery of 30 self-propelled artillery systems and 15 armoured ammunition resupply vehicles to Army.
The grants are set to be offered through a targeted investment stream as part of the Supply Chain Uplift Program.
This is tipped to fund improvements to SME capability, including upgrading business systems and facilities, gaining international accreditations and certifications, or undertaking research and product development.
Minister for Industry Support and Recovery Ben Carroll noted the benefits of the new grants program for the state’s defence industry.
“This funding is about maximising opportunities for local businesses and manufacturers to enter Hanwha’s supply chain, ensuring more Victorian-made components are used in the company’s products worldwide,” Minister Carroll said.
“The Supply Chain Uplift Program is aimed at lifting standards across Victorian SMEs and making them more competitive suppliers to Hanwha, securing more local jobs and setting them up for other lucrative contracts.”
Hanwha Defense Australia CEO Richard Cho welcomed the support from the Andrews government.
“The Land Systems Fund from the Victorian government will allow Hanwha Defense Australia to invest in both our growth and that of our supply chain,” he said.
If HDA is selected for the LAND 400 Phase 3 project, the firms may also be eligible to support the delivery of up to 450 next-generation infantry fighting vehicles.
The launch of the new grants program also comes amid the opening of Hanwha’s new corporate headquarters in Melbourne’s CBD.
“Hanwha opening its Australian headquarters in Melbourne is testament to the strength and competitiveness of our defence sector as well as our attractiveness as an investment destination,” Minister Carroll said.
“Establishing a headquarters in Melbourne is another milestone in Victoria’s partnership with Hanwha and we look forward to the company creating more skilled local jobs.”
Cho said the new office would bring together a diverse workforce.
“With the growth of the company and a focus on hybrid work, this new office allows our workforce to work safely and securely on our growing range of programs,” he said.
Meanwhile, HDA is currently working on the development of its $170 million Hanwha Armoured Vehicle Centre of Excellence (H-ACE) at the Avalon Airport Industrial Precinct.
Construction of the facility, designed to support the manufacturing of land systems, is expected to commence in Q3 2022 and conclude in Q4 2024.
“The partnership between Hanwha Defense Australia and the Victorian government is a strong one,” Cho added.
“Their support for the H-ACE and our successful application for the supply chain uplift grant program are excellent examples of industry and government working together.”
Source: Defence Connect