ANOTHER WIN FOR MULWALA

- INCREASED PRODUCTION CAPACITY FOR THE MODERNISED PROPELLANT MANUFACTURING FACILITY

On 8 June 2007 the Government announced that a $263 million contract had been signed for the redevelopment of the Commonwealth’s propellant manufacturing facility at Mulwala, NSW.

The project is in the design phase and construction is due to commence in May 2008.

I am pleased to announce that the Australian Government has agreed to expand the propellant production capacity of the modernised facility from 360 to 530 tonnes per annum (single shift) and from 530 to a minimum 800 tonnes per annum (surge capacity).

The cost of this increase in production capacity can be met from within the existing project budget.

The expanded propellant production capacity will enable the modernised Mulwala facility to better match the production capacity of the Benalla ammunition filling factory, especially in times of increased military tempo.

It will also increase the viability of commercial operations at the Mulwala facility, providing improved regional employment opportunities into the future.

The Government will also benefit directly from any additional commercial sales through a sharing of the facility's profits.

I again applaud the efforts of the Hon Sussan Ley, the Hon Dr Sharman Stone and Mrs Sophie Mirabella who have worked hard over many years to ensure a successful outcome for this project.

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