One of the world's largest defence companies is being urged to build a new fleet of combat vehicles in Victoria if its bid for the Australian Army's most expensive acquisition contract in history succeeds.
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A letter signed by every federal Coalition MP in the state was sent this week to BAE Systems after the company was shortlisted to provide the first wave of 225 armoured reconnaissance vehicles under the Defence Department's "LAND 400" project.
The MPs said Victoria's manufacturing skills, workforce capacity, supply chain and infrastructure were "unmatched by any other state".
The letter, sent to BAE Systems Australia chief Glynn Phillips, said the work would be especially important to the state economy following the recent string of car company shutdowns.
"In light of the closure of automotive manufacturing which will impact most significantly in Victoria, the LAND 400 program presents Victorian manufacturing workers including those in regional Victoria with a very significant opportunity," the letter said.
It is understood the project could generate up to 200 direct jobs and hundreds more in the wider supply chain.
Victoria's state and federal political leaders are hoping BAE selects the state as the headquarters for the project if it wins the contract, after its key competitor for the work, Rheinmetall, announced it would base its operations in Queensland.
Federal Corangamite MP Sarah Henderson, who is leading the Coalition's effort to lobby BAE to select Victoria, said there would no doubt be a "fierce battle" with Queensland, "but we are up for the fight".
"Victoria's manufacturing skills, including in the automotive sector, are the best in the country."
The initial phase of the Land 400 project is valued at $5 billion, but the winning contractor would also be a front-runner for the remainder of the project, which could be worth another $15 billion.
BAE is proposing to the manufacture the new vehicles' hulls in partnership with Victorian engineering company Marand.
Ms Henderson said she believed BAE's tender would generate "more jobs on the ground" than Rheinmetall.
"Given the commitment to manufacture the hulls locally, this suggests that BAE is offering higher Australian industry content and more jobs on the ground," she said.
BAE is yet to decide on its location, but a company spokesman said the project would boost local small and medium-sized enterprises.
"We've been delivering defence platforms and systems by Australians for Australians for 60 years and we will bring this history and strength of relationships with Australian industry to grow the capability of local SMEs throughout the life of the Land 400 program."
The Andrews state government in Victoria said it remained in discussions with BAE, which would announce its preferred location soon.
"This is a two-horse race," Industry Minister Wade Noonan said.
"With our outstanding track record in the design, development and manufacture of military vehicles for Australian and overseas customers, Victoria has the experience, expertise and supply chain to deliver this work."
Federal opposition defence spokesman Richard Marles said Victoria certainly had the "know-how to deliver these crucial vehicles".
"It's important the government make the decision on where to build them in national interest, not in their political interest," he said.
