South Australia to Grow Nation’s Weapons Manufacturing Arsenal

Saab will be heading South Australia's Sovereign Combat System Collaboration Centre. Hans Berggren/Copyright Saab AB

South Australia is set to house a new $75 million (US$55 million) state-of-the-art weapons manufacturing facility as the Australian government continues to bolster its sovereign defence capabilities.

It comes shortly after Australia earmarked $10 billion (US$7.3 billion) towards a new nuclear submarine base amid an “arc of autocracy“ and the rise of authoritarian regimes around the world.

The Sovereign Combat System Collaboration Centre will be headed by Saab, a Swedish weapons and defence company, with a focus on integrating world-leading technology into Australia’s combat systems.

The federal government has diverted $22.6 million (US$16.4 million) of its own $1.3 billion (US$950 million) Modern Manufacturing Initiative for the project, a fund designated to boost domestic production across industries.

Defence Industry Minister Melissa Price said the investment represented Australia’s economic growth and commitment to strengthening its defence capabilities.

“We are determined to build our sovereign capability to ensure that we can deliver at home what we need to defend ourselves when we need it, and this investment will help us achieve that,” Price said.

Minister for Defence Industry, Science and Technology Melissa Price during a keel-laying ceremony for the first Offshore Patrol Vessel 'Pilbara' on Sep. 11, 2020 in Perth, Australia. Photo by Paul Kane/Getty Images

South Australia’s capital, Adelaide, is already home to Australia’s premier naval shipbuilding facility and is a central hub for numerous precincts devoted to military research, development, and construction.

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The project will also see the creation of more than 950 highly-skilled jobs by 2027, along with giving Australia’s small and medium manufacturers access to lucrative national and global defence supply chains.

Minister for Industry Angus Taylor highlighted the important role the opportunity played in developing Australia’s manufacturing businesses.

“We want more Australian businesses to contribute to local and international defence supply chains, and more Australian innovation and intellectual property to be contributed to products supplied to the ADF and other markets,” Taylor said.

“This investment with Saab will enable us to leverage our highly-skilled workforce, and world-leading innovation and manufacturing might to strengthen our combat system capabilities on home soil and unlock new opportunities in some of the world’s most advanced supply chains.”

Taylor pointed out that Australia planned to continue strengthening its place as a key player in its military manufacturing and defence capabilities.

“Keeping Australians safe is one of the Morrison Government’s highest priorities,” Taylor said. “Today’s funding from the Modern Manufacturing Initiative comes on top of the billions of dollars the Government is investing to build our sovereign manufacturing capability in defence.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor at a press conference at Parliament House in Canberra, Australia, on Feb. 17, 2022. AAP Image/Mick Tsikas

Even prior to the Russia-Ukraine conflict, Australia had been accelerating the expansion of its defensive arsenal amid concerns over the last two years that Beijing would attempt to exert its power forward in the Indo-pacific.

This includes a landmark pact with the United States and the United Kingdom to grant Australia access to advanced nuclear submarine technology.

In addition to maritime capabilities, Australia has spent $3.5 billion on over 100 U.S. tanks and armoured vehicles, with a further $1 billion weapons contract inked with South Korea for 45 armoured artillery and supply vehicles.

The Morrison government has also shorted the approval times for future defence equipment and technology contracts following the reduction in red tape that had in some cases extended contract negotiations by several years.