South Australia: leading defence manufacturing 

11-03-2022

Over $22 million has been invested by the federal Government to help build the home of Australia’s sovereign combat system capabilities in South Australia while powering its  continuous shipbuilding initiative.

This investment has been made into Saab’s Sovereign Combat System Collaboration Centre under the Collaboration Stream of the $1.3 billion Modern Manufacturing Initiative.The project is anticipated to create more than 950 jobs by 2027.

According to the Government, Australia has “incredible strengths in Defence manufacturing” and this funding will amplify those strengths by uniting small and medium businesses which each bring their own unique capabilities to create vital combat systems.

World-leading technology

The funding for the $75 million project will ensure Australia’s combat systems are integrated with world-leading technology, by combining the expertise of small and medium manufacturers and building the highly-skilled workers of the future.

Saab’s Sovereign Combat System Collaboration Centre will provide a state-of-the-art facility to support Australia’s sovereign defence capability, address critical industry skills shortages, and help Australian small and medium businesses gain access to lucrative national and global defence supply chains.

“Keeping Australians safe is one of the Morrison Government’s highest priorities. 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 said.

“Our Government knows that strong national security and economic security go hand-in-hand. We are committed to building a strong, sustainable and innovative local naval shipbuilding industry, and this Centre will ensure our small and medium manufacturers can continue to be a crucial part while helping employ more Australians,” he said.

Taylor added that the Government wants 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.

“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,” he explained.

Win for SA

Minister for Finance and Senator for South Australia Simon Birmingham underlined that the Morrison Government’s $22 million investment would ensure this high-tech collaboration centre gets built.

“This is another win and vote of confidence in South Australia’s booming defence industry,” Birmingham said.This project will lead to more modern manufacturing jobs in SA and down the track more export dollars for our state.We’re making sure that South Australian defence businesses as well as our highly-skilled engineers and designers come together, collaborate and develop world-leading technologies for the future."

Minister for Defence Industry Melissa Price said the Government’s investment was yet another example of its determination to create and sustain local jobs.

“I was briefed by SAAB on this opportunity last year and am delighted that they have secured a grant for this important work,” Price said.

“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.

“Our Government has an incredibly strong track record of job creation, particularly highly-skilled jobs. This $22.6 million investment is further evidence of our unwavering support for small and medium businesses not only in South Australia but right across the country.”

South Australian Premier Steven Marshall said the investment further cemented South Australia as the Defence State.

“Today’s announcement means hundreds of jobs in South Australia in a vital sector for our state and I thank the Federal Government for continuing to commit to South Australia as the nation’s Defence State,” he said.

“South Australia’s defence sector is already creating thousands of jobs in our state and will continue to for decades to come – helping to build a strong future and opening new opportunities for our kids and grand-kids to have rewarding jobs right here in SA.”

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