en.Wedoany.com Reported - The Australian government has awarded Rheinmetall NIOA Munitions a contract worth AUD 72 million to establish a new large-caliber ammunition forging capability in Queensland, strengthening domestic manufacturing and supporting the Australian Defence Force (ADF).
The new facility will be built within a contractor-owned and operated forge in Maryborough to produce 155mm M795 artillery shells. The forge is expected to be operational by the end of 2028, with an initial annual production capacity of 15,000 rounds and the potential for future expansion. The project is expected to create up to 50 highly skilled jobs during the construction and initial operational phases, while enhancing the workforce capability at the Maryborough plant.
The 155mm M795 artillery shells produced at the facility will support ADF operations, including for the M777A2 lightweight towed howitzer and the AS9 "Huntsman" self-propelled howitzer. This announcement means that by the end of 2028, Australia is expected to have two large-caliber forging capabilities, which the government says will enhance sovereign manufacturing capacity and provide potential export opportunities.
Deputy Prime Minister Richard Marles stated that the project will expand Australia's domestic defense manufacturing capabilities. He said it is an honor to partner with Rheinmetall NIOA Munitions to increase Australia's domestic manufacturing capacity for 155mm M795 artillery shells, further enhancing sovereign capability and supporting highly skilled, well-paying jobs. The government stated that domestic forging capability will provide greater control over the supply chain, shorten lead times, and improve access to critical munitions, aligning with priorities outlined in the 2026 Defense Strategy and the Integrated Investment Plan.
In addition to the Queensland project, the government also announced an additional investment of AUD 9.2 million in Thales Australia to modernize and refurbish the existing naval 5-inch production line in Benalla, Victoria. The upgrades will include the installation of new automated equipment and lathes. Marles said this investment reflects the government's ongoing collaboration with the company. He stated that modernizing and refurbishing the naval 5-inch production line at the Benalla plant highlights the enduring and long-term partnership with Thales Australia. Together, these two industrial forging capabilities will further enhance Australia's self-sufficiency.
The government stated that these initiatives are part of a broader plan to invest between AUD 26 billion and AUD 36 billion over the next decade through the 2026 Integrated Investment Plan, aimed at building guided weapons and explosive ordnance stockpiles, strengthening supply chains, and supporting domestic manufacturing. Marles said he looks forward to working with Rheinmetall NIOA Munitions to take this important first step, which will reshape the future of Australia's ammunition manufacturing industry.
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