The contract will have Thales produce 5million boosters a year, increasing activity at its manufacturing bases inVictoria and New South Wales.
A new multi-million dollar production linewill be built for the boosters, which are designed by Orica and help detonatelarge charges.
“At a time of ongoing economic uncertainty,this is a great result for manufacturing in regional Victoria and NSW,” ThalesAustralia CEO Chris Jenkins said.
“Not only are we increasing employment andproduction levels at the sites, we’re also giving a leading Australian companycommitted to technology and innovation the reassurance of a high quality supplychain based in this country. Credit to Orica for investing in local skills andlocal manufacturing.”
The contract will sustain about 100 jobs inAustralia’s troubled manufacturing sector, with about 200 people working at theBenalla facility in VIC and 400 at Mulwala in NSW.
Component suppliers will also benefit fromincreased orders from Thales.
Orica managing director and CEO AlbertoCalderon said the deal would supply his company with better quality boosters.
“It will enhance security of supply for ourcustomers, and be more efficient for Orica,” he said.
“Solidifying a deal with Thales, with itsreputation and leadership in technology and innovation, is an excellentstrategic fit for Orica.
“In addition, sustaining jobs in regionalAustralia as a result of this agreement is a very positive flow-on benefit forthe broader community.”