More steel jobs may be created in Wollongong after Bisalloy Steel Group announced the establishment of a teaming agreement with Rheinmetall Defence Australia.
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The agreement relates to the development and production of high performance armour steel for both the Commonwealth of Australia’s Land 400 Phase 2 program and other global customers for Rheinmetall’s range of protected military vehicles.
Worth up to $20 billion Land 400 is the biggest and most expensive acquisition program in the Australian Army’s history. Phase 2 involves acquiring 225 Combat Reconnaissance Vehicles (CRVs) in a project that will modernise the Army’s Armoured Fighting Vehicle capability and provide mounted support to defence operations for decades to come.
Bisalloy Armour business manager Justin Suwart said it could mean more steel jobs for Wollongong.
“Potentially if the bid is successful and we are selected as the main material supplier we would be providing world class steel for a global partner,” he said.
“That would ensure Bisalloy’s survival in the Illawarra and increase our production and likely result in an additional shift. And that would likely result in additional personnel as well. We have a workforce of 61 at Unanderra at the moment.”
Mr Suwart said there were a number of opportunities presently in Defence for Bisalloy Steel that could positively impact the company’s Wollongong operations. “We are hot contenders for the SEA 1000 Future Submarine Project, the SEA 1180 Offshore Patrols Vessel Project and the SEA 5000 Future Frigate Project as well.”
Rheinmetall Defence Australia is the regional arm of Rheinmetall AG, a German publicly listed integrated technology group and market leader in the areas of environmentally friendly mobility and threat-appropriate security technology whose mission is to provide friendly forces with the best possible protection.
Representing the Rheinmetall Defence range of products and services in Australia from its current base in Melbourne, Rheinmetall Defence Australia is now engaged with Bisalloy on the development and qualification of Bisalloy Armour steel products for use on Rheinmetall’s BOXER Combat Reconnaissance Vehicle (CRV) for Phase 2 of the Australian Army’s 4 Phase LAND 400 program.
Rheinmetall Defence Australia managing director Gary Stewart said the success of development work with Bisalloy meant the company’s armoured steel will be added to the growing list of Australian content distributed to Rheinmetall’s global supply chain.
Mr Stewart said the company was proud to state that for the first time the steel protecting Australian soldiers would be designed, developed and manufactured by an Australian company.
“Bisalloy’s capabilities have not only created the best possible protection for Australian soldiers but also a significant export opportunity for this leading Australian manufacturer,” he said.
“We welcome Bisalloy to the Rheinmetall Land 400 team and we look forward to building a long term relationship that further establishes the company offshore.”’
Listed on the ASX and operating for over 38 years, Bisalloy is Australia's only manufacturer of high tensile and abrasion-resistant quenched and tempered steel plate used for armour, structural, protection and wear resistant steel applications.
Bisalloy Steel Group chief executive officer and managing director Greg Albert said the company had a long, collaborative association with the Australian Defence Force.
Mr Albert said Bisalloy Armour steel has become a leading product for defence applications in Australia and abroad and is specified for hulls in Armoured Personnel Carriers (APC), Light Armoured Vehicles (LAV), Collins Class submarines and the Bushmaster Infantry Mobility Vehicles in Australia, along with many APCs and LAVs worldwide.
“For 25 years, the Bisalloy story has been one of working in partnership with Australian steel producers, defence scientists and engineers, international organisations and manufacturers of military vessels and vehicles to produce what we believe are some of the best armour plate products in the world,” Mr Albert said.
“Bisalloy is proud to now be partnering with a globally credentialed company such as Rheinmetall and we are looking forward to working together in a long-term and mutually beneficial relationship.”
The agreement was signed recently at Bisalloy’s operations base in Unanderra where the steel company presently employs 61 people.
Mr Albert said it meant there may be an opportunity to invest in the plant that has been servicing the mining industry for many years.
He said the company was keen not to just rely on the resources sector.
It has been trying to diversify and generate more work with other projects.
He said the new relationship with a global player could open up more opportunities beyond what he described as a once in a generation opportunity with the defence programs presently underway in Australia.
Mr Albert said they were the kind of projects that would take skills levels and operations to a different level.
And that was great for the business and its employees.
He said it was a catalyst that could see Bisalloy compete for and be accredited for more work with international defence forces.
The agreement means Bisalloy has joined a trusted network of companies from NSW, Queensland, South Australia, Tasmania, Victoria and Western Australia as part of the Rheinmetall Land 400 Phase 2 team.
The companies will deliver a range of products and services to support the manufacture of the BOXER CRV as part of Rheinmetall’s commitment to building Australian Industry Capability.
“Bisalloy has been representing the quality of Australian manufacturing and products on the world stage for decades and we are extremely pleased to be engaged in a project that does the same while also protecting Australia’s fighting forces,” Mr Albert said.