$263M MODERNISATION OF MULWALA PROPELLANT FACILITY

I am pleased to announce that the principal contract for the redevelopment of the Commonwealth’s propellant manufacturing facility at Mulwala, N.S.W. was signed today by Defence officials and representatives of the contractor, Bovis Lend Lease. 

This important project will ensure Australia maintains a significant local industry capability for propellant manufacture for military munitions.

The $263 million contract will provide for technology transfer, design and construction of the new propellant manufacturing plant and supporting infrastructure. The funding will also allow for performance testing of the new plant and training of the workforce to run the new facility.

Up to 250 jobs are expected to be created during the construction phase of the project with approximately $150 million of work available to Australian industry during design and construction. There will be continued long term employment opportunities during its operation.

Construction is expected to commence in mid-2008 and the new plant is scheduled to become operational in 2012.

I again commend the Hon Sussan Ley, Mrs Sophie Mirabella and the Hon Dr Sharman Stone for their tireless advocacy for this project. I was also pleased the Member for Indi, Mrs Mirabella, was able to represent me at today’s signing.

Bovis Lend Lease and its US technology partner, ATK, should also be congratulated for their success in winning this important contract. 

ADI Ltd (trading as Thales Australia) and the Defence Materiel Organisation (DMO) have been working constructively together during the development, approval and tendering stages of this project. I look forward to their continuing cooperation in making this project a success.

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