Ararat in line for decades of new jobs at AME Systems if BAE Systems Australia wins Land 400 contract bid with AMV35

Defence company BAE Systems Australia announced on Friday that it would provide a $20 million contract to Ararat manufacturer AME Systems if its bid for phase two of the Land 400 program is successful.

The Land 400 program is a Defence Department initiative to replace Australia’s fleet of armoured fighting vehicles. 

Armoured fighting vehicles are designed to be far more mobile than a main battle tank but still offer troops protection from firearms and improvised explosive devices.

BAE has put forward its AMV35 Combat Reconnaissance Vehicle as a contender for the Defence Department’s search for a new armoured vehicle that uses truck-style wheels instead of tank tracks.

The AMV35 is an 8x8 vehicle equipped with a 35-millimetre cannon turret that can destroy a target 4000 metres away. 

BAE brought an AMV35 to AME System’s Ararat plant on Friday morning for its 300 workers to inspect.

BAE Australia deputy campaign director Adam Watson said he had walked the floors of many manufacturers who wanted to supply the defence industry.

“When I went to AME Systems, as I was going through the list of everything we want in a manufacturer every box was being ticked,” he said.

“I have been very privileged to visit AME Systems in Ararat three times and every time I leave with the feeling that you guys are really top shelf.

“It really is a no-brainer for BAE Systems to be engaging with AME Systems on a project like Land 400.”

BAE has selected Ararat’s AME Systems to manufacture electrical wiring harnesses for the AMV35 should the Land 400 bid be successful.

The contract would mean an additional 25 additional jobs at AME Systems.

AME Systems managing director Nick Carthew thanked BAE for going to the cost and effort to ship an armoured vehicle to Ararat so his staff could see what they might be working on in the future.

“I personally am very proud to have AME’s name as a part of BAE’s bid for Land 400,” he said

“This is a massive opportunity for AME and a massive opportunity for Ararat and Victoria.”

Mr Carthew said AME Systems had been in talks with BAE for eight years to make the new agreement happen.

“Thank you to BAE Systems for including our wonderful business and our wonderful town in your bid for Land 400.”

AME Systems would start work on the electrical wiring for the AMV35’s cannon turret, which also includes an anti-tank missile launcher.

The AMV35 weighs 32 tonnes but can still manage a top speed of 100 kilometres an hour on its armoured truck wheels.

A version of the AMV35 in service with Sweden’s armed forces costs more than USD $3 million per vehicle.

BAE plans to assemble 225 AMV35 vehicles in Melbourne.

AME Systems would likely be involved in decades of maintenance and repair work for the AMV35’s operational lifespan.

Ripon MP Louise Staley said it was a great day for AME Systems and Ararat.

“AME was founded b the Carthews primarily to create employment in Ararat, and that has been the guiding principle for this company, this family business, for its entire existence,” she said.

“As you move to new industries and you continue in the ones you already have, this is a great moment as you move forward as a community in Ararat.

“I am very proud to support this bid, to support all of your quality work that has allowed this bid to get where it is.” 

Victorian Regional Development Minister and Western Victoria MP Jaala Pulford said the state government would back BAE’s bid for the armoured vehicle contract.

“Securing the Land 400 contract would be a massive boost for regional manufacturers like AME Systems and will create jobs for our highly skilled workforce,” she said.

“Regional Victorian businesses have the proven capability and are ready and waiting to build the next-generation vehicles for the Australian Army.”