Rheinmetall chooses Qld for defence deal

Queensland Treasurer Curtis Pitt left Queensland Premier Annastacia Palaszczuk middle and Dr Anthony Lynham right

Queensland Treasurer Curtis Pitt (left), Queensland Premier Annastacia Palaszczuk (middle) and Dr Anthony Lynham (right), Queensland Minister for State Development and Minister for Natural Resources and Mines announcing that Rheinmetall Defence Australia will establish its headquarters in South- East Queensland if it wins the LAND 400 Phase 2 contract to supply Australia's new armoured vehicles in Brisbane, Friday, July 14, 2017. Rheinmetall Defence Australia plans to build 225 combat reconnaissance vehicles for the Australian Army. ( AAP Image/Darren England)

One of the defence manufacturers bidding for a key federal government defence contract says it will build in Queensland if it's successful.

Rheinmetall is one of the contenders for the $5 billion dollar contract to build and service Australia's new armoured Land 400 vehicles.

The state government has been wooing the company for the last 10 months, and the company's Ben Hudson said a trip to their headquarters in Germany by State Development Minister Anthony Lynham in May helped seal the deal.

"He personally flew across for a three-hour meeting for me, and that demonstration of commitment really did wonders for the bid," Mr Hudson said.

"Because what we're looking for is partnership, not a transaction, a true long-term enduring partnership and that's what the Queensland government have absolutely showed to us."

The federal government will make a final decision on which company to build its defence vehicles next year.

The other company vying for the contract, BAE Systems Australia, is believed to favour Victoria as their build site.

Premier Annastacia Palaszczuk said she would be happy to work with BAE as well if needed.

"Of course, we want to see as much jobs in Queensland as we possibly can," the premier said.

Liberal National Party Opposition Leader Tim Nicholls welcomed the announcement by Rheinmetall, but pointed out LNP members had been advocating on behalf of Queensland already.

If Rheinmetall wins, around 100 vehicles are expected to be based at the Townsville and Enoggerra bases, with the contract predicted to generate 450 jobs and pump a billion dollars into the state's economy.

© AAP 2017

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