Varley trumps in Defence Contract
TOMAGO-based engineering firm Varley is one of the big winners following this week's signing of a $350 million contract with Mercedes-Benz to supply 1,200 new G-Wagons to the Defence Force.
Defence Minister Joel Fitzgibbon said Varley would provide supporting modules to Mercedes-Benz, amounting to around $50 million worth of work and creating an additional 75 jobs.
"Varley can expect to be working with up to nine major subcontractors and 21 major suppliers who are expected to employ another 100 people to manufacture and deliver goods used in the modules that will outfit the trucks.
"More jobs and investment will also flow on through further sub-contracts, support services and infrastructure."
Mr Fitzgibbon said the two-tonne, all terrain vehicle came highly endorsed, with around 60,000 currently in use by defence forces in Canada, Austria, the United States, Germany and Singapore.
"Today’s contract is an important milestone for the Government’s $4.6 billion, Land 121 – Project Overlander, also the Army’s largest project.
"Land 121 is the most ambitious project ever undertaken by Army and will, over the next decade, deliver a fleet of 7,000 vehicles and supporting modules and trailers to meet the current and future demands of modern warfare.
"Earlier this year we undertook four months of rigorous compliance testing in authentic conditions to ensure the capability of the vehicle matched the requirements of the project," he said.
The new military vehicles will feature detachable unit-specific modules designed for tasks including munitions transfer, field ambulances and troop carriers, reducing the need for purpose built vehicles and increasing the logistical flexibility of the fleet.
"Varley’s role in the contract is a reflection of the company’s expertise and competitiveness in what is a complex and tough market," Mr Fitzgibbon said.
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