Orica and Thales have signed a 10-year contract to develop five million explosive boosters per year at Thales in Australia.
These boosters are used in mining and construction to help detonate larger explosives.
The contract replaces imported boosters from the Philippines and China and substitutes them with Australian-made versions.
The boosters will be produced at the Mulwala (NSW) and Benalla (Victoria) munitions factories, and involves the installation of a multi million dollar production line built for them in Victoria.
Chris Jenkins, Thales in Australia CEO, said, “At a time of ongoing economic uncertainty, this is a great result for manufacturing in regional Victoria and New South Wales.”
He went on to say that it would increase both production and employment at the sites.
Alberto Calderon, Orica CEO said, “Sustaining jobs in regional Australia as a result of this agreement is a very positive flow on benefit for the broader community.”