Former Holden plant set to become military assembly line

Holden’s defunct Port Melbourne engine plant is set to continue manufacturing under a new proposal from an Australian military supplier.

BAE systems has released plans to turn the Fisherman's Bend plant, which is still being stripped of V6 manufacturing equipment after closing late last year, into an assembly base to supply 225 Patria AMV35 armoured vehicles to the Australian army under a $5 billion federal contract.

The so-called defence technology and equipment hub would employ up to 1000 engineers and would utilise about 90 per cent of locally manufactured content for parts.

The proposal is one of many put forward after the site was sold to the Victorian government last year for $135 million.

BAE’s pitch is far from guaranteed. A rivalling bid from Germany’s Rheinmetall Defence proposes building its own eight-wheel armoured ‘Boxer vehicle’ out of Brisbane if it wins the contract over BAE.

The Patria AMV35 and Boxer have both been shortlisted by the Australian Defence Force for final testing. Both Combat Reconnaissance Vehicles (CRVs) can travel at up to 100km/h and use aspects of both a traditional tank and a personnel carrier.

“The AMV35's 35mm canon has demonstrated precision fire out beyond 4000 metres,” BAE says in a release. “This will give an Australian AMV35 crew a significant tactical advantage over threat reconnaissance elements that can only engage over shorter ranges.

“The AMV35 has three steering axles (1st, 2nd and 4th). This enables it to negotiate tight turns which, combined with its constrained external dimensions, delivers outstanding manoeuvrability in complex terrain.”

The ADF is set to make its final recommendation in the coming months ahead of the government handing down its decision in February, 2018.