South Korea Inks Almost $7Bln Contract With Australian Military - Reports

MOSCOW (UrduPoint News / Sputnik - 27th July, 2023) South Korea has won a nearly $7 billion Australian defense contract, beating out a German rival for the right to build new military vehicles for Australian troops, Australian media reported on Thursday.

The Australian government chose South Korea's Redback infantry fighting vehicle (IFV) over the Lynx from German arms maker Rheinmetall, the ABC broadcaster reported. The decision calls into question Berlin's recent commitment to buy 100 Australian Boxer reconnaissance vehicles, the report said.

Under the contract, South Korean arms manufacturer Hanwha Defense will build armored vehicles in Geelong, the home town of Australian Defense Minister Richard Marles, the broadcaster said.

Australian Defense Industry Minister Pat Conroy said he had called both competitors to inform them of Australia's decision and that the government would continue to work with Germany, although Rheinmetall was disappointed.

In early July, Australian Prime Minister Anthony Albanese confirmed a $1 billion deal to export 100 Australian-made Boxer armored fighting vehicles to Germany. The vehicles were to be manufactured at the Rheinmetall Military Vehicle Center in Queensland.