The first production output is anticipated in approximately 2.5 years from now. Credit: Jay Rembert on Unsplash.

Victorian company Pentarch Industrial has won a contract to supply, refurbish and recycle ammunition containers for the Australian Defence Force (ADF).

Under the six-year A$15m ($10.3m) contract, the company will enable the ammunition containers to be reused.

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This will allow the ADF to reduce dependence on new containers imported from overseas.

Last year, the Australian Government released the Sovereign Industrial Capability Priority (SICP) Industry Plan for Munitions and Small Arms Research, Design, Development and Manufacture.

SICP are capabilities that are critical to Defence. They must be developed or supported by Australian industry.

The contract for Pentarch Industrial is part of the SICP industry plan.

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Australian Minister for Defence Industry Melissa Price said: “Defence has had a long and successful relationship with Pentarch Industrial and this new contract will continue to directly support Defence capability and sustain 13 jobs in regional Victoria.

“Currently, there are over 800,000 containers in circulation used by defence to store and transport small arms ammunition and pyrotechnics, such as flares and countermeasures.

“The quality and condition of the ammunition containers is critical as they protect the explosive ordnance and munitions from the environment, and ensure the safety of ADF personnel.

“Pentarch’s system enables containers to be reused, rather than Defence having to resort to importing new containers from overseas.”

Earlier this week, several Australian businesses demonstrated their capabilities at the LAND 400 Phase 3 Australian Industry Capability Roadshow.