The Department of Defence has today signed a contract with ADI Limited for the storage, maintenance and distribution of the ADF's inventory of ammunition over the next ten years.
The contract value is A$229 million over the decade.
Defence expects to make savings of $85 million over the course of the contract. These savings will be directed to high priority areas in the combat forces.
ADI Limited will take over management of seventeen Defence explosive ordnance sites across Australia and also construct two new logistics facilities for explosives.
The largest facility is planned to be constructed in the Puckapunyal area in Victoria, injecting $11 million dollars into the local economy.
This contract will create many new job opportunities within ADI Limited and ensures jobs will be maintained at the regional centres.
ADI Limited has considerable experience in the management of explosive ordnance through its production facilities at Benalla and Mulwala.
The contract applies to all explosive ordnance in the current inventory and covers the warehousing, maintenance and distribution functions.
