EOS likely to manufacture Redback turrets

Canberra defence manufacturer Electro Optic Systems is in the box seat to be a major local supplier in the construction of Hanwha Defense Australia Redback infantry fighting vehicles (IFV) to be built in Geelong.

In a $5 billion plus deal just announced, EOS along with local manufacturers armour steel manufacturer Bisalloy and heavy equipment manufacturer Elphinstone are among the biggest local winners in Hanwha’s Australian supply chain of 100 companies.

EOS told investors that it was included in Hanwha’s bid for the Land 400 Phase 3 Project as the provider of the Remote Weapon Systems (RWS) – EOS’s best selling product which is also contracted to be supplied to Ukraine.

It should be noted that inclusion in a bid for contract does not mean that revenue is certain to arise for EOS even if that bid is successful.

The Redback is armed with a 7.62mm co-axially mounted machine gun, and the Electro Optic Systems’ RWS can be fitted with weapons including 7.62mm machine gun, .50 calibre machine gun and an automatic grenade launcher.

EOS is also the proposed manufacturer of the complete turret which combines the Israeli ELbit MT30 Mk2 turret with EOS’ fire control and electro optic technology.

The company told investors it may have the opportunity for a significant share of work in support of the manufacture of turrets for Hanwha.

Should this occur the company will see revenues flow from 2026 onwards.

EOS has two contracts to supply Ukraine with RWS systems, with customer demonstrations scheduled for Q3, 2023.

The company said that at the end of the latest quarter it has $109 million worth of work completed but not yet invoiced to a customer.

While this amount was drop of $30 million on the previous quarter, it almost entirely relates to its largest customer in the Middle East which were disrupted during Covid.

The total contract value is as much as $450 million.

Further reading:
Redback 60% Australian ‘content’ – Conroy
Electro Optic Systems $120 million in supply agreement with Ukraine
EOS resumes Covid-hit exports worth $150 million

Picture: Electro Optic Systems