Adelaide Now
BAE Systems shoots for the sky
Tue January 17, 2012 4:54am
BAE Systems will attempt to win global airline and military contracts after securing a new machine to produce tail fins for up to 3000 Joint Strike Fighter jets.
BAE and the State Government yesterday announced a new hi-tech device would be installed at BAE's Edinburgh site, allowing production of vertical tail fins for the jets.
The machine will be installed within a year and is billed as the start of Australia's biggest titanium aerospace manufacturing operation. BAE expects it will be able to apply the technology to similar products for other industries.
Other possible applications include in Boeing's Dreamliner commercial jet and future fighter jets.
Defence Industries Minister Jack Snelling refused to reveal how much taxpayer money had been allocated to the company, but said it was less than the estimated $10 million cost of the machine and related equipment.
Mr Snelling estimated the investment would deliver about $177 million in economic activity.
The announcement coincided with meetings in the US between Premier Jay Weatherill and defence companies based in San Diego and Dallas, but had been in the works for several months.
BAE chief executive David Allott said the investment would initially create 22 jobs at his plant and 60 at Rosebank Engineering, which will treat and finish the parts.
"This capability is flexible enough to leverage into other commercial opportunities," Mr Allott said yesterday.
Mr Snelling said contractual arrangements prevented him revealing the taxpayer cost. He forecast it would be less than the spend needed to keep car company Holden operating at Elizabeth.
"The future for manufacturing in South Australia has got to be this leading-edge stuff," Mr Snelling said.
"Advanced manufacturing is where we can compete with the rest of the world."
Victorian-based Rosebank Engineering will now establish itself at Edinburgh.
General manager Craig Butler said: "The opportunity would have been impossible ... without the significant technical assistance provided by BAE".
Opposition defence industries spokesman Steven Marshall said the announcement was "great news for South Australia" but the cost to taxpayers must be revealed.
"Again, the State Government is not giving full transparency," he said. "They need to demonstrate that there is going to be a value-for-money benefit for us."