Australian Defence Industries were formed when all the Commonwealth owned Naval Shipyards, Munitions Factories, Clothing and Canvas Factories and other Ordnance services and installations were bought from the Commonwealth Government by a 50/50 consortium of Australian owned Transfield Holdings and the french-owned Thales Australia. Following a
review by the Federal Government, a news release today has announced that approval has now been given to Thales Australia to buy out the 50% owned by Transfield. ADI is THE major contractor providing by far the bulk of materiel and servicing to the Aust Defence Force, and it is now 100% French owned.
The business known as ADI will be renamed Thales Australia. Thales Australia is an employer of 3500 employees and has revenues of $900 million. It will be divided into 6 business groups: Naval, Land, Joint Systems, Defences Services and Aerospace, Air Systems and Civil. Thales employs 60,000 people in 50 countries worldwide and generated revenues of AU$17 Billion in 2005, and has future contracts and orders worth AU$34 Billion.
While Thales, and it's subsidiary Thales Australia, has undoubtedly built a fine global reputation in the Defence business, does anyone see an issue with the bulk of any country's Defence-related industrial strength being foreign owned?