Page 149 - Australian Defence Magazine Sep-Oct 2022

SEPTEMBER-OCTOBER 2022 | WWW.AUSTRALIANDEFENCE.COM.AU
SUPPLY CHAIN MANAGEMENT RESILIENCE 149
“In Korea, we fight Hyundai Rotem in defence spaces,” Keating said. “Here in Australia, we acknowledge a mutual interest in efficient supply chains. We signed an agreement to share information and facilitate introductions to our suppliers. We’re hopeful that our next delegation will be a joint rail and defence delegation.”
Of course, while HDA is working to provide capability to the ADF and a resilient supply chain in Australia to rein- force the South Korean military, it would not be doing so if there wasn’t a benefit to the company.
HDA is contracted to build 30 AS9 Huntsman self-pro-
pelled howitzers and 15 AS10 armoured ammunition resup- ply vehicles under Land 8116 – a project worth $0.9 to $1.3 billion. It is also bidding to build ‘between 300 and 450’ Redback infantry fighting vehicles under Land 400 Phase 3, the largest acquisition project in Army history, worth up to $27 billion. There is plenty of reason for Hanwha to set up shop in Australia, leaving aside the supply chain situa- tion on the Korean peninsula.
And there is an added incentive: Australia is a Five-Eyes nation, and success in this market could lead the wider Hanwha Defense portfolio to greater success in larger mar- kets such as Canada, the UK and the US.
ENHANCING SUPPLY CHAIN RESILIENCE
IN AUSTRALIA
So what could the Commonwealth do to create a more re- silient defence supply chain?
First, it could address the most common issues faced by companies looking to expand into the defence sector: ex- pense and complexity.
At the Townsville Defence Forum, the local director of an SME outlined some of the difficulties his company faced entering in the defence sector: “The challenges we’ve faced have been many. First, getting the certifications required cost a lot of money,” he said. “And we were taking a gamble
QUEENSLAND
AUSTRALIA’S NEXT GENERATION DEFENCE SUPPLIER
Queensland has a proven track record in delivering the most advanced, large-scale military manufacturing projects including vehicles, communications and systems integration.
We have the infrastructure to support autonomous systems testing and defence force training.
We have the research capability, skills, facilities and supply chains ready for service.
Image courtesy of Insitu Pacific
qld.gov.au/defencejobs
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