An American defence company chosen to help set up a missile production enterprise in Australia has removed senior figures from its local business following tensions with the Albanese government over the multi-billion-dollar project.
Raytheon Australia’s managing director Michael Ward and other members of the leadership team are departing just two years after the firm was selected as a “strategic partner” for the Sovereign Guided Weapons and Explosive Ordnance Enterprise (GWEO).
In a statement emailed to staff this week and obtained by the ABC, Raytheon’s global vice-president Chander Nijhon announced the overhaul of the company’s Australian leadership “effective immediately”.
“After 24 years of service, Michael Ward has retired from the company. While we conduct an extensive search for his replacement, Ohad Katz will serve as interim managing director,” Mr Nijhon said.
“Gerard Foley, chief of growth; Des McNicholas, chief of people and culture; Sarah Valentine, chief of corporate services; and Carly Habils, head of corporate services, have also left the company,” the message to over 1,400 local employees confirmed.
“As we move through this transition, we will reaffirm our commitment to being a true values-based organisation,” the Raytheon vice-president wrote.
“We will also take the opportunity to strengthen our culture by living our values, building trust, demonstrating respect, holding each other accountable, and affirming our focus on innovation and collaboration across the business”.
In April 2022, then defence minister Peter Dutton announced Raytheon Australia along with the US-owned company Lockheed Martin Australia had been selected as the “strategic partners” to establish the ambitious GWEO enterprise.
The GWEO project aims to “accelerate the establishment of a local long-range guided weapons and munitions manufacturing industry” and is led by experienced defence engineer and program manager Air Marshal Leon Phillips.
However, defence and industry sources say for the past year Defence Industry Minister Pat Conroy has grown increasingly frustrated with Raytheon Australia’s approach to GWEO, particularly not cooperating with the Terms of Trade.
“Raytheon is trying to explain to the minister why his current GWEO plan is destined to fail, but [Mr] Conroy doesn’t want to hear it, while Lockheed Martin Australia are just saying yes to a whole bunch of impossible things,” one industry insider has told the ABC.
Raytheon Australia did not respond to questions from the ABC, while Mr Conroy’s office also declined to comment on the company’s sudden leadership overhaul.