DEFENCE INDUSTRY

Ms BETTISON (Ramsay) (14:13): My question is to the Minister for Defence Industries. Can the minister inform the house about the first milestone in the delivery of the ship set of parts from BAE Systems Australia's manufacturing facility at Edinburgh Parks?

The Hon. J.J. SNELLING (Playford—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for Defence Industries, Minister for Veterans' Affairs) (14:13): I would like to acknowledge the member for Ramsay's interest in the defence industries and, of course, the large number of constituents she has who are employed in the defence industries in the northern suburbs. From Edinburgh Parks, BAE Systems Australia is playing an important role in the manufacture of parts for the global Joint Strike Fighter program, under which more than 3,000 aircraft will be constructed over the next two decades for nine countries, including Australia.

The Joint Strike Fighter program is the backbone of Australia's future air combat capability, and one of the nation's most expensive defence acquisition programs to date. Yesterday, BAE Systems Australia reached an important milestone in its involvement with the Joint Strike Fighter program. The company successfully delivered its first ship set of parts to Marand in Victoria for incorporation in the Joint Strike Fighter vertical tail fin, the single largest manufacturing package awarded to Australian industry on this program. Each of BAE Systems Australia's ship sets is comprised of around 30 complex titanium components of varying sizes.

BAE Systems Australia is the country's largest defence and security company. The company's headquarters are here in South Australia. Locally, it employees 1,400 staff, nearly 25 per cent of its entire Australian workforce. Last year I visited BAE Systems' headquarters in the United Kingdom and discussed defence industries opportunities with their senior executives. With the support of the state government, BAE Systems Australia is establishing a new titanium machining facility at Edinburgh Parks to meet the rapid manufacturing rates required as the Joint Strike Fighter prime contractor Lockheed Martin ramps up towards full-rate production.

BAE's new facility will be the largest of its kind in Australia, manufacturing the highly specialised five-metre long thin titanium parts for the JSF vertical tail fin, as well as other small specialised components for the aircraft. The facility will house one of the largest titanium computer numerical control machines in the world. There is only one other, located in the United Kingdom. BAE Systems intends to start production on this new facility in January 2014.

As the JSF production rate increases, it is likely other South Australian component manufacturing SMEs will win work to ensure the production rates expected beyond 2018 can be achieved. Soon I will be visiting BAE and other major defence companies in the United Kingdom and Europe with Chris Burns, the chief executive of the Defence Teaming Centre, and Mr Andrew Fletcher, the chief executive of Defence SA, to continue to promote our state's defence credentials to secure advanced manufacturing jobs for all South Australians. I commend BAE Systems Australia on achieving this important milestone.