Aust + NZ Defence Directory 2021-22

High tech on-board level and pressure measurement

Our in-tank compact level sensors are designed for level measurement, alarm overflow and pressure measurement with exceptional accuracy and reliability. VEGA also ensures maximum operational safety under the difficult conditions, with no maintenance charges and guarantee all approvals required.

www.vega.com/navy

VEGA Australia Pty Ltd Phone 1800 817 135 Email info.au@vega.com

WE MEAN BUSINESS.

Join more than 2000 local businesses who are already registered with the Naval Group Australia Industry Capability Network portal to learn more about becoming part of our local supply chain. To discover more about the significant progress being made by our program, and becoming a Future Submarine Program supplier, visit: naval-group.com.au

The Attack Class project is creating strong partnerships between local businesses and Naval Group Australia, which are supporting jobs and securing our nation for the future. Naval Group Australia has already released more than $1 billion in opportunities for Australian supply chain businesses, including our local manufacturing package for complex submarine equipment. The delivery of 12 new and advanced submarines for Australia is a truly national endeavour, with many more opportunities still to come as we continue preparations for construction.

FIND OUT MORE AT NAVAL-GROUP.COM.AU

1

A L PHA BRAVO C O L L I NS

We are Collins Aerospace. With our customers, we chart new journeys and reunite families. We protect nations and save lives. We fuse intelligence and partnership to tackle the toughest challenges in our industry. And, every day, we imagine ways to make the skies and spaces we touch smarter, safer and more amazing than ever.

AEROSPACE REDEF I NED

collinsaerospace.com

© 2020 Collins Aerospace

2

3

Real-time situational awareness & location intelligence

Transform location data into actionable intelligence and insight

Create dynamic common operating pictures across the full chain of command

Ensure mission-critical operations run successfully

| Visit hexagongeospatial.com/industries/defense

©2021 Hexagon AB and/or its subsidiaries and affiliates. All rights reserved.

4

Helping customers through smart technology. Through science, engineering and technology, Leidos is creating robust and modernised environments for Defence, enabling the flexibility they require to greater support the warfighter.

We’re going beyond the platform.

Contact Us at: Leidos-Australia-Communications@leidos.com

5

Protection for Personnel & Assets Innovation - Safety - Performance

REDUCE FATIGUE CAUSED BY NOISE, VIBRATION & HEAT

•

Vibration damping and Isolation products

•

Non-combustible thermal acoustic insulation

•

Acoustic design specification and CAD drawings

•

Custom designed exhaust and muffler systems

• R&D department for engineering unique solutions • Lightweight solutions for enhanced vessel performance and efficiency • Structural fire protection for steel, aluminium and composite constructions

Over 30 years experience in specialised manufacture and supply providing local support, with a global presence.

pyroteknc . com

6

SOUNDPROOFING WHEN IT MATTERS

7

8

Transforming data into a new weapon For over 25 years, Atos has been a strategic partner of the Australian Defence Force. As a Key Divisional Supplier (KDS) Atos’ experience, capability and domain expertise assists Defence in achieving critical outcomes. Atos’ leading-edge solutions include Mission Critical High-Tech Systems, Electronic Warfare and Satellite technologies, High Performance, Edge and Advanced Computing, Cybersecurity, Critical Communications, Analytics, AI and world class Cloud solutions.

Trusted partner for your Digital Journey

9

CONTENTS - HOW TO USE

Fully Integrated

C4I Software

www.systematic.com/sitaware

SitaWare

SitaWare Headquarters

Headquarters C4I

SitaWare Frontline

Platform Mounted C4I

SitaWare Edge

Dismounted C4I

SitaWare

PREMIUM PLACEMENTS ASC ....................................................................................................................... 0 NAVAL GROUP ......................................................................................................... 1 COLLINS AEROSPACE ............................................................................................... 2 HANWHA DEFENCE AUSTRALIA ................................................................................. 3 HEXAGON ............................................................................................................... 4 LEIDOS .................................................................................................................. 5 PYROTEK ............................................................................................................. 6-7 SRA SOLUTIONS ...................................................................................................... 8 ATOS ..................................................................................................................... 9 IONIZE ................................................................................................................. 10 AMTIL .................................................................................................................. 12 SME GATEWAY ...................................................................................................... 13 SOVEREIGN INDUSTRY CAPABILITY EDITORIALS .................................................... 14-25 BALLISTIC & MECHANICAL TESTING .................................................................... 26-27 AUSTRALIAN MINISTERIAL FOREWORD .................................................................... 29 GOVERNMENT DEPARTMENTS DEPARTMENT OF DEFENCE ..................................................................................... 31 STRATEGIC POLICY AND INTELLIGENCE GROUP .......................................................... 31 CENTRE FOR DEFENCE INDUSTRY CAPABILITY ........................................................... 32 DEFENCE SCIENCE AND TECHNOLOGY GROUP ........................................................... 32 CAPABILITY ACQUISITION AND SUSTAINMENT GROUP ................................................. 34 CHIEF INFORMATION OFFICER GROUP ...................................................................... 34 ESTATE AND INFRASTRUCTURE GROUP .................................................................... 34 NEW ZEALAND MINISTRY OF DEFENCE ..................................................................... 35 NEW ZEALAND DEFENCE FORCE .............................................................................. 35 NZ DEFENCE INDUSTRY ASSOCIATION ...................................................................... 38 NATIONAL MEASUREMENT INSTITUTE ...................................................................... 38 ASPI (Australian Strategic Policy Institute) ................................................................ 39 AUSTRADE ........................................................................................................... 39 DEFENCE NSW ................................................................................................. 40-41 ACT DEFENCE ....................................................................................................... 40 VICTORIA’S DEFENCE INDUSTRY .............................................................................. 40 DEFENCE INDUSTRIES QUEENSLAND ....................................................................... 40 DEFENCE WEST ..................................................................................................... 42 DEFENCE SA ......................................................................................................... 42 DMTC ............................................................................................................. 42-43 INDUSTRY GROUPS & ASSOCIATIONS AIDN – AUSTRALIAN INDUSTRY & DEFENCE NETWORK INC .................................... 44-45 AUSTRALIAN CHAMBER OF COMMERCE & INDUSTRY ................................................. 44 DEFENCE TEAMING CENTRE .................................................................................... 46 AUSTRALIAN DEFENCE ALLIANCE - VIC ................................................................ 46-47 AMTIL .................................................................................................................. 46 DEFENCE INDUSTRY COURSES ALUMNI .................................................................... 48 ADIESA (Australian Defence Information and Electronic Systems Association) ............... 48 PROFILE PAGES ............................................................................ 49-114 AEROSPACE .......................................................................................................... 50 ELECTRONICS, CYBER, ICT & COMMUNICATIONS ........................................................ 54 GENERAL SUPPORT ............................................................................................... 66 LAND SYSTEMS .................................................................................................... 92 MARITIME ........................................................................................................... 98 SOLDIER SYSTEMS .............................................................................................. 109 PRODUCTS & SERVICES .................................................................. 115 BRANDS INDEX .................................................................................... 279 COMPANY INFORMATION ............................................................... 287 COVER ADVERTISERS VEGA AUSTRALIA SAINT GOBAIN ABRASIVES

This section contains expanded branding profiles for particular companies. The section is divided into a number of defence relevant sectionals listed on page 49. COMPANY PROFILE PAGES

BRANDS, PRODUCTS & SERVICES

A brand, product or service can be sourced using the detailed brands,

products and services index, which has full contact details and is cross-referenced to the supplying companies in the company information section.

The Products & Services section starts on page 115.

The Brands Index section starts on page 279

COMPANY INFORMATION SECTION

The Company Information section lists companies who supply defence- related goods and services. Listed in alphabetical order, each company listing details contact information and may include; capabilities, defence, experience and corporate information.

The Company Information section starts on page 287

AUSTRALIAN DEFENCE APPAREL DIVIDER ADVERTISERS SYSTEMATIC AUSTRALIA NAVAL SHIP COLLEGE / CASG PRECISION METAL GROUP ARROW ELECTRONICS DMG MORI AUSTRALIA & NEW ZEALAND

11

AUSTRALIA’S PREMIER MANUFACTURING SOLUTIONS EVENT

W H E R E T E C H N O L O G Y M E E T S I N N O V A T I O N

AUSTRALIAN MANUFACTURING WEEK is the industry exhibition encompassing all aspects of manufacturing in Australia. AMW will showcase the latest in manufacturing technologies and processes, with a strong focus on innovation and digital transformation. AMW will be a week-long celebration of manufacturing in Australia today.

To exhibit or visit Australian Manufacturing Week, go to WWW.AUSTRALIANMANUFACTURINGWEEK.COM.AU

AMW SYDNEY: 7-10 June, 2022 INTERNATIONAL CONVENTION CENTRE SYDNEY

AMW MELBOURNE: 9-12 May, 2023 MELBOURNE CONVENTION & EXHIBITION CENTRE

1558AMTSEP21

Australian Manufacturing Week is proudly owned and operated by AMTIL

www.amtil.com.au

12

www. d e f e n c e . d i r e c t o r y

12

Strength Through Collaboration - 100% Australian SME Capability

• • • •

Multi domain experience since 2003 Outcome focussed deliverables

Security and surety of supply

Accelerated facilitated industry access

• Complete contract and program management

Value for Money – no margin on margin from extended Subcontractor /Prime relationships

Single point responsibility for governance, contract and account management and delivery

Highly valued SME resources at set and agreed rates

Accredited and vetted SME suppliers

Direct access to over 400+ SMEs and 7,000 professionals across Australia

100% Australian, 100% SME based solutions

Collaborative working environment

13

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS THE NATION BUILD

ENGINEERING SOLUTIONS TO EMPOWER THE NATION BUILD A miga Engineering Pty Ltd is an industry leader of Additive Manufacturing; providing multiple sovereign manufacturing and engineering solutions in the one location. Since 1988, Amiga has been manufacturing for industries such as Defence, Oil & Gas, Petro- chemical, Medical, Mining and more. With humble beginnings, Amiga became known as a reliable manufacturer for critical path items, but was the “World’s best kept secret” being the 3rd party manufacturer for large business. Over time, Amiga acquired a number of business’ to rejuvenate the Australian product and add technology to capability. The company is Australia’s own globally advanced design and manufac- turing facilities; the only one of its kind that can offer genuine end-to-end and multiple manufactur- ing solutions under one roof. In December 2017, owner Michael Bourchier took the researched decision of adding Metal Ad- ditive Manufacturing to its in-house capability. Choosing 3DSystems DMP equipment, over other well-known brands, because of its low oxygen content of 2-3 PPM when printing makes this equipment produce the most homogeneous metallurgy with mechanical properties the closest if not sometimes better than billet material for high strength parts fit-for-purpose end use out of any 3D machines researched. The DMP equipment can also produce the highest quality parts for implantable devices, enabling Amiga to help patients, the medical industry and defence industries with customizable components. Employed with an expert of our technology and field, Amiga proudly lay down the foundation of the superior and high quality industrial sized metal 3d printers, being an “early adopter” and bringing global technology to Australia at scale.

Michael Bourchier Managing Director Amiga Engineering

It has been an ambitious and challenging journey; Amiga has grown its small business name deeper and further into a variety of industries. 3D print- ing has opened up new doors of innovation and modernization of manufacture. With accreditations to AS9100D, Amiga is empowering industries such as Aerospace, Space, Defence and Medical with superior printed, machined and also fabricated components for end-use. Being awarded a Sovereign Capability Grant has allowed Amiga to build security infrastructure, expand capabilities of the machines used in the process and employ more staff who specialize in this area of manufacture. Complimenting the Metal 3D Printing lab, Amiga also added 3DSystems professional additive technologies; Figure 4 and SLS polymer printers to offer a more rounded technical service to its customers. This allows us to provide clients with the flexibility to produce any type of product. This expansion has been a long-held ambition of owner Michael Bourchier and validates his early commitment to Metal 3D Printing. Michael could see the benefits of using this cutting-edge technology for producing products to meet changing client demands. In line with this goal, the team at Amiga has grown and matured over the last few years, adding new technology and enhanced capability to design and manufacture state-of-the-art components. We have also established test facilities which are able to test fire rounds and record sound vibrations emanating from the test devices. Providing test facilities in-house is not only more convenient for clients, it enables Amiga to maintain its intellectual property to become a leading expert in the field of sound suppression. Amiga is constantly building on capabilities to produce high-tech products for Defence. This Sovereign Capability has allowed us to continue to grow in this vertical. Amiga’s manufacturing and engineering capability is both broad and deep. We currently have some of the most advanced Metal 3D printing ma- chines available worldwide and have recently installed an additional machine to increase capacity as part of our strategy to provide a full fit-out of products for the Australian Army within a relatively short period. In addition to our state-of-the-art printing machines, Amiga’s in-house CNC machining and fabrication enables us to provide the full spectrum of finishing services. The CNC machining capability saves clients time and money by keeping this vital step in the manufacturing process in-house. This is a perfect example of how our end-to-end, fully integrated capabilities are continually being enhanced to better serve our clients. Signature reduction technology of sound suppressors is a new addition. Unique in design using 3D printing technology, engineering practices vastly improved with CFD and FEA analysis. As well as being a full-service centre for clients wishing to develop their own technology, Amiga also has the ATOS Q from GOM, the world leader in 3D scanning for metrology. Using the latest in scanning technology, this machine has accelerated measurement time on complex parts, for quality and reverse engineering. At Amiga, we are proud of our history of using the latest technology to manufacture the highest quality products. Having the full spectrum of ser- vices available in-house provides additional convenience for clients. Amiga Engineering Pty Ltd is a small growing business that proudly supports local business and quality Australian sovereign manufacturing. “Engineering solutions to empower your ideas”

14

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS SOVEREIGN I DUSTRY CAPABILITY EDI ORIAL

SOVEREIGN INDUSTRY CAPABILITY SUCCESSES AND CHALLENGES A s the Defence landscape rapidly evolves and new threats emerge, Atos continues to support Defence across critical ICT applications, while at the same time, delivering innovation to Australia with the introduction of proven, world-class solutions and Australian built sovereign capability in the form of AMPS (Asset Management and Planning System). Today more than ever, in a world profoundly disrupted by a pandemic which has forced governments and industries to accelerate their digital transformation, sovereign industry capability is crucial to se- cure and defend the nation. Australia must have access to the skills, technology, intellectual property and infrastructure that underpin these capabilities. Atos supports Australian Government initiatives through the introduction and development of new sovereign capabilities for the benefit of Australian Defence and the Australian economy overall. We will continue to invest in building capabilities through organisational and acquisition-based growth. Atos’s Australia sovereign industry capability intentions are clear: we aim to deliver sustainment, cybersecurity, AI and Cloud centers of excellence. We believe that these pillars are a strong founda- tion to build a tier one Australian IT services provider that will enable digital transformation. Through digital transformation we will achieve security of the nation, leadership, citizen trust and protection of our environment.

Mike Green Managing Director Atos Australia & New Zealand

Climate change is not coming, it has already arrived. Between January and March 2020, the bushfires burnt an estimated 18.6 million hectares, destroyed over 5,900 buildings and homes, and killed at least 34 people. The cost of bushfires in Australia is estimated at $2 Billion AUD. To protect Australians from the catastrophic effects of climate change, we must limit the global temperature increase to 1.5 degrees centigrade above pre-industrial levels. Atos recognises the need for leadership as digital providers and has committed to net-zero carbon emissions as early as 2028, because as the economy of data trends exponentially upwards, digital and innovative technologies play a fundamental role in decreasing carbon emissions. Our modelling suggests that new technologies have the potential to decrease global emissions by 15 to 20 per cent. The use of artificial intelligence, smart data management and green data centers will have an impact on the entire eco-system in Australia and Australia’s economic future, where sovereign industries will play an important role. The major challenge that we are facing is access to a skilled workforce developed, nurtured and cultivated within Australia. Without investing in our country, especially in our youth to build the necessary skills and capability, Australia cannot achieve its Australian industry capability objectives. We, Defence Industry, need to significantly invest in educational programs. Atos has developed a graduate program and is working closely with universities and schools across Australia to leverage access to STEM (Science, Technology, Engineering and Mathematics) for all. We need to develop school programs to help students visualise their future - our future. New technologies, such as virtual reality, provide access to new perspectives for students and teachers alike. Access to digital tools like virtual reality will also assist teachers to reduce the gap between urban and rural learning environments, inspiring the next generation of skilled STEM graduates The investments we make in education now will shape the industry in years to come, creating a more skilled and diverse workforce in Australia. In the past few years, the development of applications, computer programming and data analysis have become an essential part of the skillset for our new world. We believe that part of the solution is to develop these skills from a very early age. Equally, it is crucial to attract more young women to STEM in the school system to create the next generation of powerful, gender balanced digital technology teams. We can transform these challenges in opportunities: through a common vision from the Commonwealth of Australia and Defence Industry we can enable a bright, diverse, inclusive and sovereign future. Collaboration needs to be extended to tier 3 education as well as secondary education institu- tions. They are the cornerstone for development of the Australian Industry Capability (AIC) Program that encourages involvement of Australian industry in supply chains. Sovereign Industry Capability is about creating a proactive skilled and ready-to-be-deployed forces, without interdependencies and risks associated with content and skills. Technology, intellectual property and infrastructure must be built locally, in Australia. AMPS, an Asset Management and Planning System built in sup- port of the Australian Navy, has remained in service for over 25 years and is a living example of Australian sovereign capability. We have developed and continue to reinvest in cloud-based secure solutions in support of AIC. When technology, infrastructure and IP are designed and built for purpose and locally, it gives full control of the supply chain for the Commonwealth of Australia.

15

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS THE NATION BUILD

THE DEFENCE SECTOR HAS EMERGED AS ONE OF THE MAIN PILLARS OF AUSTRALIA’S ECONOMIC REVIVAL T he defence sector has emerged as one of the main pillars of Australia’s economic revival after the hits suffered by the economy during the COVID-19 pandemic. Defence plans to start spending $270 billion over the next decade on new capability for the Australian Defence Force (ADF). It wants to see the emergence of a robust, sustainable and in- novative domestic industry sector that can support the ADF into the future. It wants to increase Australia’s defence exports and commercialise more of the Intellectual Property (IP) developed here in Australia. That’s our takeaway at Australian Defence Alliance Victoria (ADA-Vic) from three key documents published since mid-2020: the Defence Strategic Update, which sets out the new realities driving these policy changes; the Force Structure Review – essentially an update of the 2016 Defence In- tegrated Investment Program, which sets out the projects and the spending plans that will achieve Defence’s goal; and “More, Together”, the Defence Science and Technology Strategy 2030, which explain why technology is so important to Defence and why Defence is investing in what it calls a national Defence S&T enterprise that embraces the R&D resources of every public university in the country. Importantly, the aims of the Australian government’s defence industry policy haven’t changed since the release of the February 2016 Defence White Paper. The Minister for Defence Industry, The Hon Melissa Price MP, is a champion for Australia’s defence industry, and especially its Small to Medium Enterprises (SMEs).

Sean Farrell CEO Australian Defence Alliance - Vic

This is the business environment in which ADA-Vic operates. We represent more than 700 agile, highly skilled companies, most of them SMEs, who want to do business in the defence sector. Some of them work directly for Defence, the majority are part of the growing network of supply chains supporting the industry , prime contractors who deliver much of the ADF’s equipment, sustainment activities and other services. In 2020, according to Australian Defence Magazine, Australia’s Top 20 SMEs alone turned over a combined $1.12 billion; defence SMEs as a whole are estimated to turn over approximately $2 billion a year. The market demand is massive, and therefore so is the need for Australian companies to understand the opportunities, and what it takes to exploit them. Spoiler alert: technology isn’t enough - robust supply chains are built by good businesses. ADA-Vic enables Victorian SMEs by providing regular industry updates including Federal and State grant and loan information which helps SMEs achieve that. The COVID-19 pandemic brutally exposed the fragility of many global supply chains, so defence industry policy increasingly emphasises sover- eignty. ADA-Vic helps facilitate this through its messaging process targeted on Defence, the primes, potential export customers and State and Federal government, demonstrating that Victoria’s technology-rich SMEs can do the job as reliably, competitively and at the same level of risk as their overseas competitors. Sovereignty also enables exports – you can’t sell what you don’t build. So ADA-Vic works with the Defence Export Office and Defence’s Capability Acquisition and Sustainment Group (CASG) to help its members identify and pursue international opportunities. When ADA-Vic speaks for the SMEs our voice is heard. With our unique access, we provide industry insights direct to the Primes, Defence and government officials and their Ministers in Melbourne and Canberra (often one-on-one) sharing their insights with our members. We run regular, focussed industry briefings on specific projects and topics and publish regular e-News updates. And our advocacy on behalf of the SMEs is effective: during the pandemic we have helped ensure that Defence pays its invoices – 70% of which are submitted by SMEs - within less than 12 days. Cash and time-poor SMEs haven’t got the resources to do all this: to travel domestically and internationally, gather project intelligence, identify potential customers and industry partners and then understand whom to pitch to. ADA-Vic helps bridge that gap as well as advising on things like exports and security clearances, accreditations and regulations and even on preparing tenders. We can do all this because we’ve accumulated the in-depth defence market knowledge. So, from sharing the latest information on projects, events and policies to helping members build the right network of contacts within the eco-system, everything we do is focussed on supporting members to gain better access to opportunities. ADA-Vic is a Not-for-Profit organisation, focused on enabling members do better business in Defence: we will advocate for and work with you to see that $2 billion figure grow.

Want to start doing business in the Defence industry or with Defence?

Join Australian Defence Alliance Victoria and we’ll guide you through where and how to start doing better business in Defence!

16

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS SOVEREIGN I DUSTRY CAPABILITY EDI ORIAL

AUSTRALIAN DEFENCE INDUSTRY – A NATIONAL STRATEGIC ASSET

A s the Federal Government continues with the significant challenge of replacing, upscaling and enhancing the ADF it is important to consider that there is another element to National Sovereignty and therefore strategic resilience that must be developed and enhanced, that being the Australian owned and controlled defence industry. Recent events in Afghanistan, the continuing COVID-19 pandemic, tensions in our region and the complexity of the world’s geopolitical circumstances require a robust, independent, and highly capable indigenous industry.

We as a nation continue to learn the lessons of the fragility of our supply chains across all sectors and this is a lesson that needs to be understood and more importantly, learnt from.

As the pandemic continues to batter our economy, we need to accept that at some point this economy is going to have to move into a recovery phase and if we are going to maintain the standard of living we have all come to expect then Australian industry becomes a vital component of that recovery plan.

Brent Clark CEO AIDN

Throughout the pandemic the Government and the Department of Defence have been able to keep the defence programs largely on track, this means that defence dollars have continued to flow, and companies continue, in the most part, to be viable operating entities. The ability for Defence to bring forward the payment of invoices allowed many companies to maintain a positive cash flow throughout the pandemic, which in turn allowed them to maintain a solid workforce. Although many were involved in achieving this, AIDN applauds the efforts of the Hon Melissa Price, Minister for Defence Industry and the Capability and Sustainment Group under the leadership of Mr Tony Fraser, AO CSC for proactively managing these outcomes.

Defence has a difficult role to perform; it must meet the requirements of the Government of the day and to do this it requires people, equip- ment and services. The acquisition of equipment must be achieved to a defined cost and agreed schedule.

Given the nature of the activity and the Government’s stated requirements to create a sovereign industrial base to achieve greater national resilience then Defence is also obligated to ensure that Australian owned and controlled industry receives the majority of work orders. Contracts, to ensure that most of the activity is undertaken in Australia by an Australian company. At present this simply is not the case, recent studies indicate that less than 50% of the activity is spent within Australia, further to this a significant percentage of that spend is with foreign owned and controlled multinational companies. It is acknowledged that many of these overseas owned companies do attempt to engage with Australian industry, and those efforts are to be applauded, the simple reality is that there should never be an order placed without first determining whether the work can or could be done in Australia, how Australian companies are going to be included in the activities and how Australia companies are going to be upskilled and enhanced to undertake the activity into the future. Australia has proven industrial capabilities, with companies that compete on a global stage, our mining and medical industries come to mind. This is not the case with our defence companies who largely struggle to get a toe hold into many of these programs, watching as the overseas supply chain of some of these multinational companies are engaged ahead of them, usually behind the guise of intellectual property issues, or undue risk or non-competitiveness. Australia lags the world in the development and protection of its Defence Industry and this needs to change, and change can only come through the intent of the Government and with proactive Government policy that mandates Defence to ensure that Australian owned and controlled industry is at the forefront of every acquisition decision.

AIDN looks forward to working proactively with both sides of the political spectrum, Defence and the multinational companies to achieve this best for Australia outcome.

.

17

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS THE NATION BUILD

IS THE GOVERNMENT’S DEFENCE INDUSTRY POLICY WORKING? I s the government’s defence industry policy working? That depends on what you mean by ‘working’. Defence’s local spending is increasing, both in absolute and relative terms. Last year Defence’s local equipment acquisition spending hit a record $3.5 billion. That’s 38% of the total equipment spend, so 62% is still going overseas. 38% may sound low but it’s been on an upwards trajectory for several years. This year Defence is aiming for nearly $3.9 billion, or 42%. It’s an even more positive picture in sustainment spending with $5.2 billion, or 69% spent locally last year. On the other hand, those figures from Defence are a black box; it’s impossible to know where exactly those dollars are being spent, and what sovereign industry capability they are devel- oping. How is it divided up between primes, local companies, and universities? There’s no shortage of announcements about local grants and contracts, but what does it all add up to? You’ll forgive me if I don’t get too excited about an announcement regarding $10 million in lo- cal contracts for the $90 billion Attack-class submarine program. And the fact that one of the crown jewels of the shipbuilding program has revealed a further two-year delay indicates that regardless of who is to blame increasing defence spending isn’t getting the capability the ADF needs when it needs it. Aside from the problem of lack of data, another problem in assessing progress against the government’s industry policy is working out what it actually is. As with all sacred texts, people read it in different ways. As I was re-reading the editorials from last year’s Australian

Dr Marcus Hellyer Senior analyst defence economics & defence capability Australian Strategic Policy Institute

& New Zealand Defence Directory, I was struck by two comments that represent the ends of a policy spectrum. Brent Clark wrote, ‘if work can be done in Australia it must be done in Australia’, while Graeme Dunk argued that ‘as funding is finite it therefore follows that to get maximum “bang for our buck” we need to invest in those industry and military capabilities most aligned to the mitigation of strategic risk.’ It seems to me that when the Defence Industry Policy Statement was written in 2015 to support the White Paper, it was intended to pursue the second position. In its application over time, it has followed the first. This slippage can be seen in the Sovereign Industrial Capability Priorities themselves. When they were first released there was no doubt that they listed important capabilities, but already they covered a very large percentage of Australian defence industry capability. If everything is a priority, then nothing is. Moreover, much of the government’s spending is going on things that aren’t SICPs—nowhere in the land combat vehicles industry plan is the ability to build vehicles mentioned, yet the government is embarking on over $30 billion in local armoured vehicle assembly even though we know we can get the vehicles much more quickly by buying and building overseas. On top of that, another four SICPs have just been announced even though three years after the first ten were announced we still don’t have industry and implementation plans for two of them—including what is arguably the most significant of them, the continuous shipbuilding program. Defence industry policy is a conceptually challenging space. It’s among the most wicked problems I’ve encountered. Wicked problems are those which are difficult to solve, because of the wide range of stakeholders, changing requirements over time, and complex interdependen- cies. In fact, defining a wicked problem is just as difficult as solving it. And perhaps most fundamentally, not all stakeholders will share the same view of what counts as a valid solution. In short, you won’t make everybody happy. As Ralph Waldo Emerson wrote, ‘a foolish consistency is the hobgoblin of little minds.’ Seeking consistency and perfection in such a complex and contested space as defence industry policy is a fruitless quest. The details are never going to deliver everybody’s wish list. Personally, I’d like to see a clearer articulation of how the policy will develop a more robust Aussie ‘middle class’ of prime systems integrators rather than expecting it to evolve by itself. But I’m hesitant to suggest the government produce even more policy. The focus now needs to be on ensuring that the investment is not just delivering industry capability but more importantly ensuring it’s delivering the military capability we need in a time of increasing strategic uncertainty. If it’s not we need to adjust the plan, even if it means adjusting commitments made to industry. And for me, that means recon- sidering a naval shipbuilding plan that is not delivering a new warship for over another decade.

18

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS SOVEREIGN I DUSTRY CAPABILITY EDI ORIAL

SOVEREIGN CAPABILITY FOR BOSCH REXROTH AUSTRALIA IS TO BECOME TECHNOLOGY PARTNERS WITH OUR CUSTOMERS B osch Rexroth Australia was founded in 1987 with a key focus on providing high quality products and solutions to Australian manufacturers. Today, 34 years later, the business has matured and provides complete sovereign capability to industries across multiple sectors such as mining, agriculture, manufacturing, defence and many more. The landscape and remote nature of Australia and its industry proves to be a unique challenge, a challenge that has confirmed that localisation is the key! Bosch Rexroth is a division of the Bosch Group, a multinational with a global footprint encom- passing 60+ countries, 395,000 employees, operating in diverse business sectors of Mobility Solutions, Industrial Technology, Energy & Building Technology and Consumer Goods. The Bosch Group in Australia employs around 1300 associates, trainees and apprentices. Bosch Rexroth Australia has 9 operating locations with 300+ employees. Our Head Office is located in Kings Park - NSW and is the heart of our Australian Sovereign Capability in the form of a Design, Engineering, Manufacturing, Warehousing and Logistics hub.

Rod Elvin Sales & Service Director Bosch Rexroth Australia

Our Manufacturing in Australia is born not only from necessity, but from a global approach within Bosch Rexroth that “to be global, we must go local”. We continue to grow with our core competency of Hydraulic Components, Systems and Power Units manufactured in Kings Park meeting demanding technical and quality standards from many industry sectors however, our Assembly Technologies and Factory Automa- tion equipment is also quickly becoming a benchmark for Australian manufacturers. An example is the recently supplied transfer system sub-assemblies manufactured to order for Bosch Australia Manufacturing Solutions (BAMS), used in the manufacturing of at home COVID testing kits. Most of our engineered to order projects executed in Australia (including Defence) have a very high Australian Contract Expen- diture, typically 60-80%. Our approach to sovereign capability is somewhat holistic, not only can we provide engineered to order systems and equipment, we have the capability to supply an end to end approach supported by our Australia wide sales and service activities. Combined with our $35m + local inventory holding, we provide the necessary sovereign security in times of global market turmoil. Given the unique situation of Bosch Rexroth supporting and suppling locally and globally to the Primes, OEM’s, SME’s and when the Prime is no longer supporting the DoD direct for heritage programmes, our inventory is critical and a part of sovereign security. Furthermore, we have a stable local supply chain of around 1500 suppliers with critical partnerships that have been supported for 20+ years. To support our activities, we invest in our infrastructure and associates. In 2012 we opened a purpose-built facility in Brisbane, March 2017 we opened a new facility in Perth and June 2021 saw us move into our new purpose-built Advanced Manufacturing Centre at the Bosch Australia Clayton site in Melbourne. This $17m investment is significant and will facilitate our regional growth strategy. Sovereign capability for Bosch Rexroth Australia is to become technology partners with our customers, providing state of the art technical solutions and systems in Hydraulics, Automation, Industrial Applications, I4.0 and Advanced Manufacturing. This propels Australian manufac- turers into a best in class capability space, enabling critical partnerships to be developed locally in Australia to achieve the highest possible sovereign capability.

19

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS THE NATION BUILD

NEW SOVEREIGN INDUSTRIAL CAPABILITY PRIORITIES D efence businesses in Australia and New Zealand have faced extraordinary challenges during the COVID-19 pandemic. Well before the pandemic highlighted challenges to supply chains, Defence was already working to ensure access to the most critical industrial capabilities that underpin Australia’s defence preparedness. Defence is committed to achieving the Government’s vision for a robust, resilient and interna- tionally-competitive Australian industrial base. Australia’s Sovereign Industrial Capability Priori- ties (the ‘Priorities’) reflect the industrial capabilities Australia must have access to, or control over, to help us meet the challenges of our rapidly evolving and dynamic security environment. They will also increase our self-reliance as we continue our recovery from the COVID-19 pan- demic. The Minister for Defence Industry, Melissa Price, announced four new Priorities, in August 2021, in addition to the 10 Priorities identified through the 2018 Defence Industrial Capability Plan. The new Priorities are:

• Robotics, Autonomous Systems, and Artificial Intelligence;

Stephen Moore Assistant Secretary Defence Industry Branch Department of Defence

• Precision Guided Munitions, Hypersonic weapons, and Integrated Air and Missile Defence Systems;

•

Space; and

•

Information Warfare and Cyber Capabilities.

Defence recognises that a strong partnership with industry is fundamental to developing Defence capabilities, and we are closely engaging with industry partners to further refine these new Priorities and develop industry and implementation plans. These plans will focus on the areas most critical for the delivery of each Priority through the identification of critical industrial capabilities. The publication of these plans will provide industry with the confidence to understand and invest in those capabilities most sought after by Defence. Many of the actions included in the industry and implementation plans will come directly from insights provided by Australian business. The eight industry and implementation plans already published also include a list of initiatives and programs to support Australian industry, including the Sovereign Industrial Capability Grants Program. Working closely with the Centre for Defence Industry Capability and Depart- ment of Industry, Science, Energy and Resources, Defence delivers capital expenditure grants that provide funding to small and medium businesses contributing to the development, maintenance and enhancement of the Priorities. Since the grant program opened in November 2018, 99 grants have been awarded to Australian small and medium businesses, with a combined value of $55.6 million. It should come as no surprise that the Priorities are considered during the Defence procurement process – after all, Defence has considered industry as a fundamental input to capability since 2016. These days, before a Defence project goes out to tender, an internal assessment determines if the project includes any of the industrial capabilities needed in Australia. Where the Priorities apply, tenderers are required to include in their response the steps they will take to build, maintain, or enhance those capabilities locally. The evaluation of each bid takes account of its ability to deliver an Australian industrial response; this assessment is considered alongside capability, cost and schedule as part of the decision-making process. But it is not enough to apply the Priorities during the tender process alone. By the tender stage, businesses need to be established and ready to deliver the requirement. To support the development of an industrial base, Defence’s involvement starts much earlier in the Defence Capability Life Cycle – at the strategic planning stage. That’s why Defence is ensuring that industry is considered at the earliest possible stage in our planning and procurement processes. Defence firmly believes that a strong partnership between Defence and industry is fundamental to developing Defence capabilities. This goes beyond the ability to win or award contracts, and goes to the heart of keeping our nation safe and secure. This partnership includes working with New Zealand businesses. It includes increased development and enhancement of the newly announced Priorities. It extends to access- ing a pool of skilled, security-vetted personnel, and support to enter the export market. It involves improving the measurement of our defence industry and understanding our supply chain. Together these steps will help us reach our objectives set out in the 2020 Defence Strategic Update and Force Structure Plan.

20

www. d e f e n c e . d i r e c t o r y

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2021/22 INDUSTRY GROUPS, ASSOCIATIONS & GOVERNMENT DEPARTMENTS SOVEREIGN INDUSTRY CAPABILITY EDI ORIAL SOVE IGN I UST Y

HARD CHOICES BUT CLEAR BENEFITS I n what can only be described as a period of ‘business unusual’, the Australian defence sector has fared well and, in some respects, has been an exemplar for others to follow. Issues of resilience and capacity, which Defence has been grappling with for some time, now have a renewed urgency and national focus. For me, the defence sector’s response to the COVID-19 pandemic has reinforced the importance of a key element of our sovereign industrial capability, that is, the concept of ‘line of sight’. With it, indi- viduals, teams, and organisations can confidently overcome bumps along the way because they are aligned to a clear set of priorities and work towards a known – and shared – objective. Without line of sight, trust can be lost, approaches can be fragmented and the bumps along the way can seem insurmountable. Defence has made renewed commitments to some of the key concepts in the landmark 2016 White Paper and policy suite. Significant announcements about future investment forecasts have been matched by strong support for innovation, sovereign industrial capability and industrially-focused re- search. In response to the COVID-19 pandemic, Defence’s leaders have provided brilliant leadership and flexibility in engaging openly and transparently with industry, including with industrial innovation partners like DMTC, which is gratefully acknowledged. With regard to our sovereign capability, Defence has done some of the heavy lifting by identifying and issuing plans for capabilities that Australia needs to build within its industrial base to ensure that mod- ern Defence systems and equipment are right for the job. From a policy standpoint Defence has rein-

Mark Hodge Chief Executive Officer DMTC Ltd

forced the notion of shared responsibility. Defence expects industry to actively engage in due diligence to determine in-country capacity and develop value-for-money solutions to maximise opportunities for Australian industry participation. Organisations like DMTC play a key role in this, working with primes and small businesses alike. But that’s by no means a declaration of success. Sovereign capability means different things in different contexts. Australia may never have either the scale of demand nor the wherewithal to develop and build the likes of an Aegis combat system from scratch. But should we have an in-country capability to understand it, to be able to upgrade or add to it, and to sustain it ourselves? At its heart, sovereign industrial capability means asking, “do we have the skills and knowledge and IP available to us to do what we need to do for the benefit of the country?” Worthy ambitions to see this objective as meaning that we own everything or have the capability to do everything are not affordable or realistic. We risk running into difficulty with either overly optimistic or overly proprietary views. The conversation can be too easily hijacked by what I’d call the airport billboard mentality. You can understand why any one individual industry player might opportunistically say “To be sovereign you need my product” but if sovereign industrial capability is based on products alone, then we will inevitably lose an important part of the picture. We need to shift the conversation to be about underpinning technology and capability, not solitary products. The capability of individual industrial and research sector players in Australia has rarely been in question. It’s the joining and the linking and their ability to partner and form a cohesive ecosystem that requires attention. The sovereign capability question is not just about individual businesses providing individual products, it’s about the ability to respond when needed. And that’s got to be about networks, about structures, and about collaboration. And, of course, an ability to rapidly apply our minds, capabili- ties, and resources to a problem as it emerges rather than being constrained by the known limitations of any one proprietary offering. DMTC’s reputation and credibility in the defence and industrial sectors has been hard-earned and demands constant attention. In many respects we stand on the shoulders of our capable industrial and research partners, who continue to work with us to embrace the challenge of capability through collaboration. A key ingredient is the appetite for innovation. The business of innovation leadership is fluid, diverse, and a specialist endeavour. DMTC must carefully balance the credibility and reputation that its proven operating model enjoys with being open to new approaches. We must ‘be innovative about how we innovate’ but do so in a structured and strategic way. DMTC has shown that harmonising the cultures and success drivers of the research sector, the industrial sector and government practitioners is not only possible but is an investment that delivers real dividends. Successfully integrating the different motivations, drivers and approaches creates an environment for purpose-driven collaboration. This is where the magic happens. Human capital is another significant consideration, particularly, but not only, for the R&D sector. Sovereign capability is akin to a national insurance policy, providing Defence with peace of mind, knowing that enough smart people and enough knowledge exist in-country to ensure Australia can pivot to meet emerging challenges. In recent times, DMTC has extended its engagement across government agencies, welcomed new partners to its activities and added expertise and depth to the management team. All of these additions affirm our line of sight into the future and give us a great deal of confidence for continued success.

21

www. d e f e n c e . d i r e c t o r y