Gold Coast Defence Manufacturing gets funding
Two Gold Coast firms gain $1.77m to expand local defence manufacturing and skilled jobs.
What’s happening?
The Queensland Government is backing two Gold Coast companies to increase local defence manufacturing and strengthen Australian supply chains.
Victorian technology company Arkeus is moving its manufacturing capacity to a new facility at Ormeau. The company produces optical radar systems that help drones and other uncrewed craft see, understand and react.
Rhino Linings will install defence-grade equipment at its Molendinar facility. This will allow BattleJacket protective coatings to be produced in Australia for the first time.
The coatings protect military vehicle fuel tanks from ballistic penetration and blast damage. Until now, the product had to be sourced from the United States.
Both projects are supported through the Sovereign Industry Development Fund, which also funds biomedical and biofuel projects across Queensland.
Why it matters?
Producing defence equipment locally can reduce Australia’s reliance on overseas suppliers. It can also support faster repairs, a reliable supply and stronger production during periods of increased demand.
The two projects will add specialised manufacturing, repair and support services to Queensland’s defence sector. They also align with Australia’s long-term need for locally produced military technology and equipment.
Deputy Premier Jarrod Bleijie said Queensland had a critical role in supporting the country’s defence capability.
“Queensland has a critical role to play in supporting Australia’s defence capability, and these investments will strengthen local manufacturing, sovereign supply chains and industrial capability to ensure our State is ready to meet that challenge,” Mr Bleijie said.
“After a decade of decline under Labor, Queensland can’t afford more talk and missed opportunities and the Crisafulli Government is backing investment-ready projects that will strengthen Queensland’s sovereign industries, create skilled jobs and deliver long-term economic growth.
“Unlike Labor, we’re investing in projects that are ready to proceed and will deliver real outcomes for Queenslanders, not more thought bubbles or glossy brochures.”
Finance, Trade, Employment and Training Minister Ros Bates said the funding followed a recent investment in Arkeus led by Queensland Investment Corporation.
“The Crisafulli Government lured Arkeus’ advanced manufacturing to Queensland from Victoria, which will deliver highly skilled jobs and boost sovereign capability,” Minister Bates said.
“After Labor’s decade of decline, we’ve sent the message loud and clear that Queensland is back open for business and this is another example of a cutting-edge company seeing the sunshine and realising Queensland is the place to be.”
Local Impact
The projects will expand defence production at Ormeau and Molendinar, creating more opportunities for Gold Coast workers and suppliers.
Arkeus has already recruited senior Queensland staff, including its new Vice President of Manufacturing, Andrew Sim. The company also plans to grow its Queensland team during the coming years.
Coomera MP Michael Crandon said supporting manufacturers would create skilled jobs and strengthen the local economy.
“Backing local manufacturers to expand their capability means more skilled jobs for Gold Coast workers, greater opportunities for local suppliers and a stronger economy for our community,” Mr Crandon said.
“We’re focused on practical investments that support local businesses to grow and ensure Queensland remains a leader in sovereign manufacturing and defence capability.”
Southport MP Rob Molhoek said Gold Coast businesses were helping build Queensland’s defence manufacturing capacity.
“The Crisafulli Government is backing local businesses that are creating skilled jobs, investing in new technology and delivering real economic opportunities for the Gold Coast,” Mr Molhoek said.
“This funding will help businesses grow, employ more locals and strengthen the Gold Coast’s reputation as a centre for advanced manufacturing and defence innovation.”
By the numbers
$1.77 million has been awarded to the two projects through the state’s $180.6 million Sovereign Industry Development Fund. Arkeus will receive $1.48 million, while Rhino Linings will receive $285,000.
59 jobs are linked to the Arkeus project, including 46 ongoing operational positions. The company has already hired four senior Queensland employees.
Twentyfold growth in manufacturing capacity is planned at Arkeus. The funding follows a separate $25 million investment led by Queensland Investment Corporation.
Zoom In
Arkeus said its Ormeau operation would become the company’s Australian manufacturing hub. It will produce specialised optical sensors for Australian customers and allied export markets.
The company announced this week that its new facility had opened. However, the government release said the supported operation was expected to be fully operational by late 2027.
The funding will help Arkeus add production and repair services while responding to demand from Australian and United States defence agencies.
Arkeus Chief Executive Officer Simon Olsen said the Gold Coast facility would support the company’s wider growth plans.
“Arkeus is just getting started on the possibilities for defence technology that can help drones and other uncrewed craft to see, understand and act,” Mr Olsen said.
“Thanks to SIDF, we can establish an advanced manufacturing facility on the Gold Coast that will include new production and repair capabilities for our specialised AI-powered optical sensors.
“Our new Ormeau facility will allow us to significantly scale manufacturing, meet growing demand from Australian and U.S. defence agencies, and support the next stage of Arkeus’ growth.
“We see enormous opportunities to strengthen Queensland’s sovereign capabilities in advanced manufacturing for the defence sector, to grow export markets, and create skilled local jobs.”
Rhino Linings will use its funding to buy equipment for producing BattleJacket coatings at Molendinar. Equipment installation is due to begin later in 2026, with the project scheduled for completion by mid-2027.
BattleJacket reacts with fuel when a military vehicle tank is damaged. The coating seals the affected area, helping prevent fuel loss and reducing explosion risks.
The company already supplies protective linings and coatings for military helicopters and personnel carriers. Australian defence customers will be its main market, although exports to Asia are also possible.
Rhino Linings Australasia General Manager Peter Morgan said local production would replace the need to source BattleJacket from the United States.
“With the support of SIDF we’re acquiring the equipment needed to produce BattleJacket at our Molendinar facility,” Mr Morgan said.
“Our main target market is defence force use here in Australia but there’s also the potential for export, particularly to Asia.
“The coatings have great potential as a solution for fuel tank damage in military vehicles because, if there’s a breach, the product reacts with fuel to immediately ‘self-heal’ resulting in no hole, loss of fuel or explosion risk.
“Rhino already makes linings and coatings that protect military transport like helicopters and personnel carriers so this is a great opportunity to expand supply.”
Zoom Out
The Sovereign Industry Development Fund supports projects in Queensland’s defence, biomedical and biofuel industries.
Its defence funding covers manufacturing, maintenance, testing and support services. The program also aims to attract private investment and create long-term employment.
The Gold Coast projects will add optical sensor production, repair services and military vehicle protection products to Queensland’s industrial base.
Arkeus plans to supply Australian and United States defence agencies. Rhino Linings will initially focus on Australian defence customers, with possible exports across Asia.
What To Look For Next?
Rhino Linings plans to begin installing its new equipment later in 2026. Its expanded Molendinar production operation is due for completion by mid-2027.
Arkeus will continue increasing manufacturing and repair capacity at Ormeau. The government expects the supported operation to be fully operational by late 2027.
Planned workforce growth and rising defence demand could bring more jobs, supplier contracts and export opportunities to the Gold Coast.