Qantas has sold its defence services division, Qantas Defence Systems (QDS), at RAAF Base Richmond, for $80 million to USA-based Northrop Grumman, a leading global security company providing a range of services to government and commercial customers worldwide.
While the Flying Kangaroo may have hopped away, the new owners are expected to rename the facility and offer employment to the 320 employees at QDS, which has its main operation at Richmond.
It provides maintenance, supply, deep maintenance and training support to major defence aerospace systems with sales of around $140 million.
The facility is one of a cluster of 275 businesses, which have formed around the RAAF base contributing goods and services to meet the nation’s defence requirements
This cluster is one of the largest in the country, according to a Deloitte Access Economic study in 2012.
The size of the cluster is a combination of its proximity to the large population and diversified economy of Sydney and the fact that Defence has been operating in the area for a significant amount of time, according to the NSW government’s NSW Position Paper On Defence, September 2013.
The paper notes that the NSW share of Australia’s Defence expenditure is around 24 per cent which is at risk through relocation interstate or closures of assets and, therefore, it is critical that the NSW government continues to promote and develop the state’s defence industry.
The two-year old, Parramatta-based Sydney Aerospace and Defence Interest Group (SADIG) has over 150 members who aim to work collaboratively to strengthen the state’s successful aerospace and defence industry in a competitive marketplace.
Western Sydney is well represented in the industry with companies such as Raytheon Australia and BAE Systems, at North Ryde, Thales and Indra, at Rydalmere, CAE Industries, at Silverwater, ETMS Technologies, at Parramatta, SAFRAN Group, Quickstep Technologies and Australian Aerospace, at Bankstown, Broens Industries, at Ingleburn, and Flite Path, at Penrith.
Bob Germaine, executive officer, of the Parramatta-based RDA-Sydney, said his organisation and SADIG – a RDA-S project – welcomed the position paper as it provided a clear statement setting the direction for the future growth and sustainability of the industry in NSW.
