The move represents another step in Rheinmetall Defence's progressive inter-nationalisation and systematic expansion into key markets. The Düsseldorf-based German Group has production and sales units in numerous European countries, the United States and Canada, the United Arab Emirates, South Africa and Asia.
Rheinmetall Simulation Australia is a wholly owned subsidiary of German defence and automotive company Rheinmetall AG, which has an annual turnover of approximately €4 billion (A$ 5 billion). Rheinmetall Defence's business unit Simulation and Training is Europe's second largest simulation and training company and the largest supplier of defence simulation equipment for land warfare operations.
Rheinmetall Simulation Australia will provide advanced simulation based training products and services to the Australian armed forces in the maritime, air and land environment and plans to aggressively grow the company to be the major supplier of these products in the region and to become the preferred partner of the Military.
South Australian Minister for Defence Industries, Jack Snelling, who was visiting Rheinmetall Defence in Bremen at the time of the announcement, noted: "Rheinmetall is one of the largest Defence companies in the world and it is a coup for South Australia that they have decided to grow their business in our State." The Minister said further that "The South Australian Government is committed to continuing to grow our Defence industries and looks forward to a prosperous relationship with Rheinmetall in South Australia."
Mr Ulrich Sasse, President of Rheinmetall Defence's business unit Simulation and Training said: "Today represents an important milestone in Rheinmetall's plans to establish a subsidiary of its simulation operations in Adelaide to serve the Australian Defence Forces. We chose to establish our operations in Adelaide because of its vibrant defence industry and the availability of skilled engineers. Adrian Smith brings a wealth of experience in the local and international market and we are confident that our new Adelaide-based company will grow to be a major supplier of simulation based training products and services to the Australian Defence Forces."
Mr Adrian Smith commented: "I am delighted to join the Rheinmetall family and look forward to being part of the team that produces the world's leading simulation technology for Defence applications. Our plan is to grow a significant engineering capability in Adelaide to service the Australian Defence forces and ultimately the larger Asian market". As the former chief executive of Adelaide-based Sydac Pty Ltd Adrian Smith has over 25 years of experience in the simulation industry.