German conglomerate Rheinmetall Defence plans to increase its presence in the Asia-Pacific region with the creation of a new business unit, Rheinmetall Simulation Australia.
The Düsseldorf-based company will base the new operation in Adelaide, South Australia. The growth is part of its expansion policy aimed at moving into key international markets; it already has sales and production units in the U.S., United Arab Emirates and South Africa.
The Adelaide operation will provide advanced simulation-based training products and services to all three branches of the Australian armed forces. Rheinmetall said it plans to “aggressively grow the company to be the major supplier of these products in the region.”
South Australian Minister for Defence Industries Jack Snelling was visiting Rheinmetall Defence in Germany when the company announced its new Australian plans.
“Rheinmetall is one of the largest defense companies in the world, and it is a coup for South Australia that they have decided to grow their business in our state,” he said. “The South Australian government is committed to continuing to grow our defense industries and looks forward to a prosperous relationship with Rheinmetall.”
Ulrich Sasse, president of Rheinmetall Defence’s simulation and training business unit, said that the combination of a healthy defense industry community plus availability of skilled engineers had been behind the company’s decision to establish its new subsidiary there.
Adrian Smith, managing director of the new subsidiary, added that it planned “to grow a significant engineering capability in Adelaide” and expand its activities into Asia.