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A major injection of $508 million into defence projects at Orchard Hills is set to create more than 2,000 jobs across the Hawkesbury and Western Sydney region, delivering a significant economic boost for local communities.
The Australian Government has announced two major contracts under its Guided Weapons and Explosive Ordnance (GWEO) plan to upgrade and expand the Defence Establishment Orchard Hills (DEOH), one of the region’s most important military facilities.
"The two separate contracts include local industry, indigenous workforce, apprentice training and women in construction targets, as well as procurement commitments, designed to ensure significant economic benefits flow to the local community." a Defence spokesperson said.
Hansen Yuncken will lead a $298 million upgrade of base infrastructure, including new training and working spaces, with construction expected to be completed by early 2029. The project is forecast to generate around 600 direct jobs for engineers, construction workers and plant operators.
Meanwhile, ADCO Constructions has secured a $210 million contract to build new guided weapons and explosive ordnance storage facilities, due for completion in late 2027. This work is expected to create a further 300 direct jobs.
Beyond the construction workforce, an estimated 1,400 indirect jobs will be supported through local supply chains, including steel and concrete production, fabrication and logistics. Together, the projects are expected to inject close to $500 million into the Hawkesbury economy.
Minister for Defence Industry Pat Conroy said the investment reflects the Federal Government’s commitment to strengthening Australia’s sovereign defence manufacturing capability.
“The Albanese Government is delivering a defence future made in Australia and creating thousands of well-paid jobs for locals with this major infrastructure investment,” Mr Conroy said.
Currently, DEOH employs around 700 Defence personnel and contractors. The upgrades are designed to significantly expand the base’s capacity and reinforce Western Sydney’s growing role in Australia’s national defence strategy.
The contracts also include targets to boost Indigenous employment, apprenticeships and opportunities for women in construction, ensuring the benefits are shared widely throughout the community.
A critical defence hub in Western Sydney
Defence Establishment Orchard Hills is a tri-service munitions storage base of particular importance to the Royal Australian Air Force. Located in Orchard Hills (between Penrith and St Marys), its primary role is the storage, maintenance and distribution of explosive ordnance, including bombs, bullets, missiles and other military explosives.
The base is also home to the RAAF-run Defence Explosive Ordnance Training School, which provides specialist training in the handling of explosives to all branches of the Australian Defence Force, along with public servants and contractor personnel.
Spanning around 1,740 hectares, the site includes weapon and firing ranges, fire training areas, fuel storage facilities, a sewerage treatment plant and waste disposal areas. A privately owned Thales Ordnance Training Centre also operates on site, delivering accredited training in explosives storage, transport, manufacture and testing.
Defence Explosive Ordnance Training School (DEOTS) at Defence Establishment Orchard Hills.
Environmental concerns
While the base plays a crucial role in national security, it also encompasses a significant area of critically endangered Cumberland Plain Woodland, a unique ecosystem found only in Western Sydney.
More than 900 hectares of DEOH was previously set aside as an environmental offset to compensate for woodland cleared during construction of the Western Sydney (Nancy Bird-Walton) Airport.
However, in 2022 concerns have been raised after part of this designated offset area was cleared for a carpark linked to a new facility within the base. Environmental groups have also questioned whether land already owned by the Federal Government and previously protected can genuinely serve as an effective offset for new development.
Despite these concerns, the latest investment is expected to bring substantial economic opportunities to the Hawkesbury, with local residents and businesses set to benefit from increased employment and flow-on work for years to come.
Photo: Guardian Australia May 2022. The cleared bushland was marked as an offset to compensate for the destruction of endangered bushland in building the western Sydney airport.
