Electro Optic Systems bids with Korean giant to build fighting vehicles for the Australian Army
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High tech defence company Electro Optic Systems (ASX: EOS) is teaming up with a global Fortune 500 company to bid for a multi-billion-dollar Australian defence contract.
The partner is Korean giant Hanwha which, amongst other things, is one of the world’s largest armoured vehicle manufacturers.
How big? It made $87 billion in revenues last year.
Hanwha (prime contractor) and EOS (principal first tier subcontractor) have bid for the Australian Army’s ‘Land 400 Phase 3’ infantry fighting vehicles [IFV] contract, based on Hanwha’s Redback IFV featuring the EOS T-2000 turret and R-400S remote weapon station mounted above the turret.
If the Hanwha-EOS team is successful EOS could make $1 billion over 8 years, the company told investors.
Other contenders include US company General Dynamics Land Systems (GDLS) and Germany’s Rheinmetall (a name that just screams ‘defence contractor’).
Rheinmetall actually won the $5.2 billion LAND 400 Phase 2 contract with its Boxer 8×8 CRV combat reconnaissance vehicle in March last year.
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The government is expected to short-list two vendors for comprehensive, comparative testing in the third quarter this year, with a full contract award expected in 2021.
EOS has tendered for “well over” $2 billion worth of work over the past year, which is due to be awarded over the next 30 months, EOS chief executive Dr Ben Greene said.
This rate of tender submission is expected to continue “for at least the medium term”.