The Australian government has taken another step towards rapidly establishing domestic manufacturing of missiles and munitions at scale under a plan that bolsters Australia’s defence capabilities while creating hundreds of jobs. The government today announced Thales has been selected as the preferred tenderer to build a new domestic forging capability for 155mm M795 artillery ammunition. The 155mm M795 artillery ammunition are used by Australia, the United States and other international partners for the M777A2 Light Towed Howitzer, a critical close-fires capability.
Defence will work with Thales as the preferred company to build, establish and commission the forge at the Commonwealth-owned Benalla Munitions Facility. This project is expected to support at least 550 jobs. The forge will produce 15,000 rounds each year by 2028, with capacity to produce up to 100,000 for global consumption. It will also be the first dedicated forge outside of the United States that will manufacture 155mm M795 artillery ammunition.
In another boost to domestic manufacturing, the government is also committing to an Australian facility to manufacture Guided Multiple Launch Rocket Systems (GMLRS), in partnership with Lockheed Martin Australia. This is expected to create 70 local manufacturing jobs and hundreds of jobs to develop the facility. GMLRS is a long-range surface-to-surface precision strike capability that can be fired from High Mobility Artillery Rocket System launchers.
The new facility will enable Australia to produce viable volumes of GMLRS for global consumption, as reaffirmed at the 2024 Australia-United States Ministerial (AUSMIN) Consultations. It will be capable of producing up to 4,000 GMLRS each year from 2029. This represents more than a quarter of the current global production and more than 10 times the current ADF demand. This builds on the government’s commitment to manufacture a small batch of GMLRS in Australia, commencing in 2025.
Both projects are part of the Guided Weapons and Explosive Ordnance (GWEO) Enterprise – backed by an investment of up to $21 billion over the next decade – and aligned with the Albanese Government’s Future Made in Australia Agenda. They also form part of the 2024 Australian GWEO Plan, the Government’s blueprint to build Defence’s GWEO stocks, strengthen supply chains and support a domestic manufacturing capability over the decade.
Deputy Prime Minister, the Hon Richard Marles said: “Today’s announcement is another example of the Albanese Government’s commitment to developing a more capable military force while also supporting a future made in Australia. In our rapidly evolving strategic circumstances, the ADF must be equipped with capabilities that can hold adversaries at risk. The 2024 National Defence Strategy affirmed the need to invest in munitions to build stocks, strengthen supply chains and support a domestic manufacturing capability.
Investment in a sovereign GWEO Enterprise that can produce and maintain priority weapons will support the ADF’s transformation to an integrated, focused force.”
Minister for Defence Industry and Capability Delivery Pat Conroy said: “By producing GMLRS at scale and investing in the development of a capable and resilient Defence industrial base to forge 155mm M795 artillery projectiles, Australia can be more self-reliant and able to accelerate the delivery of capability to the ADF, as well as our international partners. Today’s announcement demonstrates the Australian Government’s commitment to manufacturing munitions in Australia, to develop our sovereign defence industrial base in areas of strategic priority. Our industry partners are paramount to achieve the strategic priorities outlined in the 2024 National Defence Strategy. We look forward to working with Lockheed Martin Australia and Thales on these important projects.”
Thales Australia said in a statement it welcomes its appointment as a Guided Weapons and Explosive Ordnance (GWEO) Strategic Partner under the government’s 2024 Australian GWEO Plan.
Jeff Connolly, CEO, Thales Australia and New Zealand, said: “Today’s announcements are proof of the enduring trust between Thales Australia and the Commonwealth. Thales Australia’s down-selection to build, establish and commission the 155mm M795 forging capability at the Commonwealth-owned Benalla Munitions Facility is good news for Australian industry, and good news for Australian workers. Thales employs over 730 skilled staff at Mulwala and Benalla to manufacture munitions systems for the ADF and international partners. We also have an established regional supply chain with over 650 local suppliers providing solutions to key chemicals, components and materials. The Commonwealth-owned facilities at Mulwala and Benalla are the envy of the world; most nations shut their facilities at the end of the Cold War. Without these facilities, we would be unable to manufacture key GWEO capabilities, such as 155mm M795 artillery ammunition and GMLRS missiles. This an example of the strong partnership between government and the private sector in keeping these factories relevant – including considerable investment of approximately $30 million from Thales in particular. Thales Australia’s partnership with Lockheed Martin is an important step on the pathway to an accelerated sovereign GMLRS capability for the Australian Defence Force.”
For Editorial Inquiries Contact:
Editor Kym Bergmann at kym.bergmann@venturamedia.net
For Advertising Inquiries Contact:
Group Sales Director Simon Hadfield at simon.hadfield@venturamedia.net
While the current Govt have received a lot of criticism on defence, some deserved and some not, the GWEO has certainly picked up in recent times and is starting to hit it’s stride in getting contracts in place for domestic manufacture of a number of weapons systems. For a long time nothing was happening, at least in the public realm, and people were wondering if it was all just talk. However, it’s good to see it coming together.
what’s the difference between m795 and Rheinmetall’s sennagi (?) 155mm ammo built in maryborough Qld. Isn’t the m777 howitzer capable of using sennagi (?) ammo, is this only for huntsman, or is the m795 forge more about taking advantage of the lack of sufficient us production to get a market share in this widely used ammo?
Basically why do we need two different 155mm artillery ammo forges/factories?
You are referring to the Asegai – and yes it will be fired from M777s and the future Huntsman SPH. It is fully imported from South Africa. It could be manufactured in Australia by Nioa at Maryborough, but that would cost extra. Currently Maryborough is producing shells for Germany, which are a slightly different shape. The M795 is slightly different, again. It could be manufactured at Maryborough, but the government has opted for a 2 year delay (2026 v 2028) and a lot more cost in awarding that contract to Thales.
Your basic point remains: why does Australia suddenly need an extra 155mm forge when Maryborough has been up and running for a couple of years with a fully motivated, highly trained workforce. I wish I could answer that one. The decision in favor of Thales is very difficult to explain.
I believe that the decision was made to rectify a perceived imbalance in defence manufacturing capabilities concerning NIOA having a forging plant in Australia whereas Thales does not. That said, I prefer defence contracts to be awarded to local companies that are either family-owned or government-owned.
I’m puzzled by the need for 2 forging plants. NIOA can produce 100,000 shells per year. By all means give Thales a contract to fill them with explosive or make the charges, but for taxpayers to fund a second forge looks plain wrong.
Given the prices of 155mm over the last two years, the Maryborough forge has probably already paid for itself.
Yes, it’s interesting how the rest of the world is desperate for more 155mm artillery, but in its infinite wisdom, here the DSR cut the number of Huntsman 155mm SPHs by half.
Another point I have just remembered too, Whatever happened to VRA’s Australian production of the Spike LR2 long range ATGW?
As army’s primary ATGW weapon for both infantry and armour I would think that securing a sovereign capability would be vital to keeping army equipped for the battlefield?
It seems to have stalled indefinitely. My understanding is that Spike will be fully imported from Israel.