Australia expands artillery manufacturing with $72 million deal

The Australian government has signed a $72 million contract with Rheinmetall NIOA Munitions to establish a new forging capability to produce large calibre ammunition for the Australian Defence Force (ADF) in Queensland, continuing its commitment to locally manufactured guided weapons and explosive ordnance (GWEO). The new forging capability for 155mm M795 projectiles will be established at the contractor owned, contractor operated forge in Maryborough, Queensland. It will begin operating by the end of 2028 and is expected to produce an initial 15,000 rounds a year, with the capacity to scale up to higher volumes. The establishment of this capability will create up to 50 highly-skilled, well paid jobs during the construction and initial operation of the forge, and will upskill and enhance the existing workforce at the Maryborough site. (PHOTO: NIOA) The 155mm M795 projectiles manufactured at this facility will directly support the ADF, for use in military platforms including in the M777A2 Lightweight Towed Howitzer and the AS9 Huntsman self-propelled howitzer. The announcement means that by the end of 2028, Australia will have two large calibre forging capabilities ensuring a sovereign, reliable and modern manufacturing capability supporting Australian-made products for our ADF and providing export opportunities to international partners. Domestic forging also ensures Australia has control of the supply chain and will always have access to forged projectiles, reducing lead times and better equipping the ADF in times of conflict, in line with the 2026 National Defence Strategy and Integrated Investment Program’s focus on resilience and self-reliance. The government is also announcing a $9.2 million investment in Thales Australia to modernise and refurbish the existing naval 5-inch production line at facilities in Benalla, Victoria. This investment will see new automated equipment and lathes incorporated into the production line. These initiatives are backed by an investment of $26 billion-$36 billion over the next decade through the 2026 Integrated Investment Program. The projects deliver on the 2026 National Defence Strategy priorities to build GWEO stocks, strengthen supply chains and support domestic manufacturing capability. Deputy Prime Minister Richard Marles said: “We are proud to be partnering with Rheinmetall NIOA Munitions to boost domestic manufacturing of 155mm M795 artillery projectiles in Australia, further strengthening our sovereign capabilities and supporting high-skilled, well paid jobs. The modernisation and refurbishment of our naval 5-inch production line at our facilities in Benalla highlights our enduring and longstanding partnership with Thales Australia. Together, these two industrial forging capabilities will further enhance Australia’s self-reliance. We look forward to working with Rheinmetall NIOA Munitions on this significant first step which will reshape the future of munitions manufacturing in Australia.” NIOA Group CEO Robert Nioa has welcomed Rheinmetall NIOA Munitions’ (RNM) appointment as the company to manufacture a key munition for the Australian Defence Force. Nioa said NIOA was proud to support Defence in responding to the accelerated defence manufacturing priorities outlined in the Australian Government’s Guided Weapons and Explosive Ordnance (GWEO) Plan. “Australia now has a true sovereign industrial capability for a critical munition, made right here in Maryborough, supporting the Australian Defence Force as well as allied supply chains,” he said. “This investment is a major vote of confidence in our team and regional manufacturing. With the government’s support, we’re expanding our production capacity, creating new local jobs and skills that stay in the community.” For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]