Hanwha Defence Australia signs construction contract with Kapitol

Australian construction firm Kapitol has been selected to deliver Stage 2 of Hanwha Defence Australia’s $170 million Armoured vehicle Centre of Excellence (H-ACE). The scope of Stage 2 involves the design and construction of new facilities at Hanwha’s 32,000 sqm Avalon site, located in Victoria’s Geelong region. The facility will serve as a manufacturing hub for armoured vehicles, addressing the Australian Defence Force’s (ADF) requirement for 129 Redback Infantry Fighting Vehicles under LAND 400 Phase 3. Kapitol Director and Co-founder, Andrew Deveson, said the company’s expansion into the defence sector reinforces its capability to deliver high-security, critical infrastructure at a national level. “Working with the defence sector at this scale requires more than technical expertise; it calls for a forward-thinking approach that seamlessly integrates innovation and security. Our work on Hanwha Defence Australia’s H-ACE Facility marks a significant step in expanding our presence in Australia’s industrial manufacturing sector. As a project of national significance, the H-ACE Facility reinforces our commitment to delivering cutting-edge infrastructure that supports Hanwha’s mission,” said Deveson. “Stage 2 of the H-ACE will see an expansion of the facility to include an EMI/EMC chamber, enclosed firing range, second production line, vehicle and equipment storage alongside a heavy washdown facility,” Hanwha Defence Australia General Manager Facilities, Hichang Lee said. “Stage 1 was primarily aimed at establishing our footprint here in Australia and supporting the Huntsman vehicles under LAND 8116. This expansion is aimed at the Redback Infantry Fighting Vehicles under LAND 400 Phase 3 and beyond.” Stage 2 construction will feature innovative approaches to streamline delivery timelines. Structural models and specialist equipment will be prefabricated off-site to minimise assembly time and streamline the installation process on-site, aligning with the accelerated timeline outlined in the Defence Strategic Review. “One of the biggest productivity challenges in the construction industry is rework caused by avoidable mistakes,” said Deveson. “Eliminating these inefficiencies through thorough planning and execution can significantly improve project outcomes and staff productivity. By prefabricating materials during the construction process, we can accelerate timelines and ensure the facility is ready and responsive to the Defence Force’s needs. “The H-ACE is strategic not just for Hanwha globally, but also for the Australian Defence community,” HDA Acting Managing Director Mr. Dean Michie explained. “The capability that our facility provides Victoria, and the wider Defence enterprise is what resilience looks like in action.” Stage 2 is anticipated for completion in 2026 and is predicted to involve a total workforce of 1,500 staff over the lifetime of the project. The facility contributes to Kapitol’s growing $2 billion pipeline and its growing expertise in delivering complex industrial projects within Australia. For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]