Federal government MPs from across Victoria wrote to BAE Systems – one of two companies shortlisted for the tender along with German firm Rheinmetall Landsysteme GmbH – this week, urging them to build the fleet of vehicles in Victoria, and the Bendigo Advertiser has confirmed Thales has been in talks with both companies.

Labor MP and member for Bendigo Lisa Chesters backed the push on Friday, saying the city was “Australia’s home of defence manufacturing” and best placed to support the successful bidder.

“I know that Thales have been proactive in engaging both of the remaining bidders to see what role we could play in the manufacture of this new armoured vehicle,” she said.

“Bendigo’s actually the best facility and place to manufacture, or at the very least part-manufacture, the LAND 400.”

The letter, sent to BAE Systems Australia chief Glynn Phillips, said the work would be especially important to the state economy following the recent string of car company shutdowns.

"In light of the closure of automotive manufacturing which will impact most significantly in Victoria, the LAND 400 program presents Victorian manufacturing workers including those in regional Victoria with a very significant opportunity," the letter said.

It is understood the project could generate up to 200 direct jobs and hundreds more in the wider supply chain.

Victoria's state and federal political leaders are hoping BAE selects the state as the headquarters for the project if it wins the contract, after its key competitor for the work, Rheinmetall, announced it would base its operations in Queensland.

Federal Corangamite MP Sarah Henderson, who is leading the Coalition's effort to lobby BAE to select Victoria, said there would no doubt be a "fierce battle" with Queensland, "but we are up for the fight".

"Victoria's manufacturing skills, including in the automotive sector, are the best in the country."

But Ms Chesters also said she was disappointed the issue had continued to “drag on” and called on the government to require a guaranteed apprenticeship ratio be included in the final contract.

“Give the next generation of tradespeople an opportunity to learn their trade out at Bendigo Thales or any defence manufacturer,” she said.

With – The Age