Australia has sealed a $1 billion defence deal with Germany after that country’s government approved an order for 100 armoured vehicles to be built in Queensland, supporting over 600 jobs in the state.
In what Prime Minister Anthony Albanese described as the single largest military export agreement in Australian history, the Boxer heavy weapon carrier vehicles will be manufactured at Rheinmetall Defence Australia, after Defence Industry Minister Pat Conroy agreed to terms with his German counterpart last week.
An offshoot of Rheinmetall, a large-scale automotive and arms manufacturer headquartered in Dusseldorf, Rheinmetall Defence Australia, is based at the $170 million Military Vehicle Centre of Excellence (MILVEHCOE) located in Redbank, west of Brisbane.
Prime Minister Albanese visited MILVEHCOE, and via an opinion piece in The Courier Mail trumpeted the gravity of the deal which he said will “secure 600 direct jobs in Queensland, with opportunity flowing right through the supply chain.”
Mr. Albanese said the supply agreement with security partner Germany, represented a “significant boost to our sovereign capability.”
“Winning this landmark export deal is a tribute to the skills and abilities. We want a strong Australian defence industry, we want a future made in Queensland—by Queenslanders [and] supporting Germany’s strategic needs is a jobs opportunity.”
Rheinmetall also has centres in Adelaide, Canberra, Melbourne, Townsville and Wellington, New Zealand.
The company is involved in various defence projects including the delivery of 211 Boxer Combat Reconnaissance Vehicles for the Australian Defence Force (ADF), and partners with NIOA Munitions located in Maryborough, Queensland to produce ammunition.
In 2023, the company also signed a contract to supply the Multi Ammunition Softkill System to the Royal Australian Navy, a technology that protects ships from sensor-guided missiles. This $200 million deal is Rheinmetall’s single-biggest order for ship protection technology.
The armoured vehicles deal was first proposed in July 2023, when Mr. Albanese attended a NATO leaders summit in Europe and met with German Chancellor Olaf Scholz in Berlin for talks, ultimately confirming an in-principle agreement.
There had been some speculation the deal may not go ahead after the Defence Industry Minister Conroy, in 2023, opted to award a $5 billion contract for the replacement of 129 of the ADF’s Vietnam-era light armoured fleet, known as Redbanks, to Korean manufacturer Hanwha.
The vehicle roll-out is expected to be completed by 2025.
