Chemring Australia has secured a $107.5m contract from the US Navy under the global F-35 programme.

The Geelong-based firm will be responsible for the production and delivery of countermeasure flares for Australian, US and international F-35 operators.

The company manufactures and supplies air-launched countermeasures against advanced electronic systems.

This contract is claimed to be a culmination of a multi-year joint effort between the US Government, the Australian Government, and Chemring Group.

Australian Minister for Defence Linda Reynolds said: “This is a strong endorsement of our domestic manufacturing capability, and the policies we’ve put in place to bolster our sovereign defence capability.

“This contract will also aid the ongoing advancement of a domestic munitions manufacturing capability, one of ten Sovereign Industry Capability Priorities under our Defence Industrial Capability Plan.”

Australian Minister for Defence Industry Melissa Price said: “This is a significant milestone, not only for Chemring Australia, but for Australia’s defence industry as a whole.

“This will create highly-skilled manufacturing jobs in Victoria, as well as opportunities across Chemring Australia’s supply chain for many Australian small businesses from procurement of raw materials, to qualification testing and transportation.”

The commencement of the multi-million dollar contract is expected to attract more high skilled defence jobs in the Geelong region.

Australian Senator Sarah Henderson said: “This (contract) shows that Victoria has the potential to be a real defence industry powerhouse, with regional cities like Geelong in the box seat to secure more work like this.

“This announcement builds on the Morrison government’s significant investment to build and sustain 30 self-propelled howitzers in Geelong, which will deliver up to 350 jobs and provide vital capability for the Australian Army.

Chemring Group and Australian Defence have been working closely with the US Navy’s Naval Air System team since 2011 for the qualification of Chemring Australia as the second source supplier of the MJU-68 countermeasure, and MJU-61 training flares.