AUS: Purchase of Additional Armoured Vehicles

Media Release

The Hon. John Moore, MP

Minister for Defence

Friday, 4th August, 2000 MIN192/00

Purchase of Additional Armoured Vehicles

The Minister for Defence, John Moore, today announced that the Australian Defence Force would acquire up to 150 additional Australian Light Armoured Vehicles (ASLAV) and support equipment.

The vehicles will be purchased under the next phase of Project ASLAV and will enhance the capability associated with the existing fleet of 111 ASLAVs purchased between 1995 and 1997.

"Australia's existing fleet of ASLAVs performed very successfully in East Timor, and these additional vehicles have been developed for and proven against the Australian Army's requirement to conduct armoured reconnaissance operations," Mr Moore said.

"The Government has agreed to proceed with the contract, prior to the release of the White Paper later this year, because of the ASLAVs capability to enhance the Army's ability to conduct and sustain reconnaissance and surveillance operations.

"In addition to providing the ADF with a capable, state-of-the-art fleet of light armoured vehicles, the project will provide a significant boost for the South Australian Defence industry and Australia's exports," Mr Moore said.

General Motors Defence (GMD), through the Canadian Commercial Corporation, is the successful tenderer, and the contract will be managed by the recently established General Motors Defence Australia (GMDA) Asia Pacific Regional Headquarters in Adelaide.

In line with the Federal Government's commitment to Australian industry and self reliance, GMD will establish a global fabrication and regional assembly plant in Adelaide to build the ASLAV turrets. This will be the sole turret fabrication facility for GMD's international program. Exports are expected to commence in March 2001, with a shipment of approximately 100 LAV-25 turrets to Canada. Other potential export opportunities may include up to 500 turrets within the next five years.

"The estimated value of transferring the turret manufacture to South Australia is $37.9 million," Mr Moore said. "An estimated 50 full-time positions will be created at GMDA in South Australia as a direct consequence of the turret production. Overall, there is a potential for more than 100 new jobs to be created." Australian industry involvement also will include extensive Australian sourcing of vehicle components for ASLAV, a contract for the manufacture and fit of Mission Role Installation Kits, as well as the assembly and test of the finished vehicles. This work will be subcontracted to Tenix Defence Systems in Adelaide and is expected to be to the value of $40 million.

ENDS

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