Elphinstone signs $90 million defence contract to build vehicle hulls

Elphinstone said the contract, worth about $90 million, was part of Hanwha Defence Australia's delivery of the Redback family of infantry fighting vehicles to the Commonwealth of Australia under LAND 400 Phase 3.

The new vehicles will replace the ageing M110 armoured personal carriers, which were acquired in 1964.

The first Redback vehicles are expected to be completed in early 2027.

The work to be conducted by Elphinstone under its contract will sustain employment for 95 personnel, at its Wynyard site.

Elphinstone general manager Ben Sandow said the contract showed the company had invested well when it built up its capability to manufacture defence machinery.

Initially, the government was going to invest in 450 vehicles but that has been called back to 129.

More defence announcements are expected during the federal election campaign and Mr Sandow said Elphinstone was "certainly open" to supporting more defence projects.

The signing of the hull contract has cemented the relationship between HDA and Elphinstone.

"By continuing our relationship with Elphinstone, HDA will be able to synchronise and strengthen delivery of our current programs," HDA, Acting Managing Director Dean Michie said.

"HDA is already working with Elphinstone on the LAND 8116 Phase 1 Protected Mobile Fires program for the Huntsman family of vehicles.

"This is a strong foundation that we are building together to demonstrate the high technology vehicle manufacturing capability of both companies in Australia, that is globally competitive."

Mr Sandow said the company was very excited to enter a second major contract with Hanwha, following the 2022 Huntsman deal.

"We are proud to play a significant role in Australia's defence industry," Mr Sandow said.

"While our focus is now firmly on the successful execution of the current Huntsman and Redback programs, we have established a capability which is unique in Australia.

"We are poised to continue to manufacture for the defence industry well into the future."