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Townsville-based manufacturer TEi Services stands to create more local manufacturing jobs thanks to a new defence contract.

Under the agreement signed last month, TEi Services will manufacture armoured doors, hatches, and covers at their Townsville workshops and deliver the completed items to Hanwha Defence Australia’s facility in Avalon, Victoria for integration onto their LAND 8116 Phase 1 (Protected Mobile Fires) family of vehicles.

The contract, valued at over $10M, marks a new era for the locally owned company. Having provided specialised trade repair support locally for Defence vehicle assets, this contract is the first big leap into Defence prime supply chains for the company.

Leveraging the 55 years of local manufacturing experience, along with heavy investment in systems, certifications and skills development activities, the company has proven it has the expertise and capability to confidently deliver this package of works.

As manufacturing ramps up, local jobs will be created for many roles in North Queensland, including boilermaker welders, painters, fitters, machinists, and other skilled areas. It also provides for opportunity for growth amongst the company's supply-chain partners.

In addition to manufacturing these sub-assemblies for the vehicles, TEi Services is also well positioned to provide through-life maintenance support to the vehicles, the majority of which will be based at Army’s 3rd Brigade in Townsville.

Hanwha Defence Australia has been contracted by the Department of Defence for the LAND8116 Phase 1 Protected Mobile Fires program, a more than $1 billion project to acquire self-propelled artillery systems. Altogether, the Australian Army is acquiring 30 AS9s, a 155mm Self Propelled Howitzer based on the Korean K9 Thunder, and 15 AS10 Armoured Ammunition Resupply Vehicles (based on the K10) under the program.

In the delivery of the program, Hanwha Defence Australia is partnering with sovereign defence industry spanning the country, providing significant economic benefit to Australian industry partners and their corresponding supply chains.

Images: Huntsman test gun firing at ADF Port Wakefield P&EE, South Australia (courtesy of Hanwha Defence Australia)

Townsville manufacturer NEM Equipment Hire has been awarded $833,000 through the Made in Queensland program

FEB 2024

Townsville manufacturer NEM Equipment Hire has been awarded $833,000 through the Made in Queensland program

A Miles Government manufacturing grant will enable Townsville manufacturer, NEM Group to purchase a CNC (Computer Numerical Control) Beamline machine that will expand the manufacturing capacity and grow the business, resulting in as many as 20 new jobs over the next five years; with five of those being created within the next 12 months.

NEM Equipment Hire, part of the NEM Group, are a major service provider to Townsville’s defence sector and the sugar industry. This work includes servicing Wilmar sugar mills, blast-and-paint, equipment maintenance for air force equipment such as dozers and fuel trucks, as well as repairs to army equipment, and manufacturing replacement steelwork, to name a few.

Purchasing the new CNC beamline machine has been made possible thanks to $833,000 in funding from Round 5 of the Queensland Government’s Made in Queensland program.

The machine will ensure tasks they can be completed more quickly and to a consistently higher standard. This is crucial for NEM as the business pursues increased project work from its air force and army clients.

NEM will be able to deliver steel fabrication components on-site faster and more efficiently through reduced manufacturing times, reduced lead times and faster logistical processes.

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