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Hawkei set to replace Land Rover in $1.3b contract

THE Federal Government will spend $1.3billion building 1100 vehicles in Bendigo for the Defence Force.

Prime Minister Malcolm Turnbull and Defence Minister Marise Payne announced the project on Monday.

It will see 1100 Hawkei protected all-terrain vehicles and 1000 trailers manufactured in the regional Victorian city.

The vehicles were the only ones in the Defence arsenal that could be transported by helicopter to high-risk military zones.

While a decision on the major submarines contract has not been made, the Hawkei contract could create up to 170 jobs in Bendigo.

The Hawkei will replace Defence's Land Rovers and will be built on the Thales Bushmaster line as production of that vehicle winds down, with full production from 2018.