Australian Prime Minister Anthony Albanese was present at the signing, along with Australian Ambassador to Germany Philip Green and State Secretary at the Federal Ministry of Defence Benedikt Zimmer.
Under the agreement, Germany will purchase “over 100” Boxer HWC heavy weapon carrier wheeled combat vehicles for over AUD 1 billion. The vehicles will be manufactured at the Military Vehicle Centre of Excellence (MILVEHCOE) in Redbank, Queensland. The facility is owned by the Australian branch of Rheinmetall.
According to the Australian authorities, the contract will sustain approximately 1,000 jobs and represents a significant success for the local defense industry. It is also one of the largest export contracts in Australia’s history and a significant boost to further develop local manufacturing capabilities. By comparison, the Australian Army ordered 211 Boxer CRVs with various mission modules for over AUD 3 billion in 2018.
Initial information about the possibility of selling Boxer vehicles produced under license in Australia to Germany emerged in March. At that time, the potential value of the order was estimated at around AUD 3 billion. The purchase will likely be financed from a German special modernization fund worth EUR 100 billion.
The purchase of Boxer vehicles for the Bundeswehr in Australia may have been necessary due to Rheinmetall’s current orders for Boxers for European countries. On the other hand, it could be a significant argument in favor of the German offer in the Land 400 Phase 3 program, which involves the purchase of new tracked infantry fighting vehicles for the Australian Army, where the German Lynx KF41 competes with the South Korean Hanwha AS21 Redback.
