The Australian Government has awarded a $72 million contract to Rheinmetall NIOA Munitions to establish a new large-calibre ammunition forging capability in Queensland, in a move aimed at strengthening domestic manufacturing and supporting the Australian Defence Force (ADF).
According to the government, the new facility will be established at a contractor-owned, contractor-operated forge in Maryborough and will produce 155mm M795 artillery projectiles. The forge is expected to be operational by the end of 2028, with an initial production capacity of 15,000 rounds annually and the ability to scale up output in the future.
The government said the project is expected to create up to 50 highly skilled jobs during construction and the early stages of operation, while also enhancing workforce capabilities at the Maryborough site.
The 155mm M795 projectiles produced at the facility will support ADF operations, including use in the M777A2 Lightweight Towed Howitzer and the AS9 Huntsman self-propelled howitzer.
The announcement means Australia is expected to have two large-calibre forging capabilities by the end of 2028, which the government said would strengthen sovereign manufacturing capacity and provide potential export opportunities.
Deputy Prime Minister Richard Marles said the project would expand Australia’s domestic defence manufacturing capability.
“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,” Marles said.
The government said domestic forging capability would provide greater control over supply chains, reduce lead times and improve access to critical munitions, aligning with the priorities outlined in the 2026 National Defence Strategy and Integrated Investment Program.
Alongside the Queensland project, the government announced a further $9.2 million investment in Thales Australia to modernise and refurbish the existing naval 5-inch production line in Benalla, Victoria. The upgrade will include the installation of new automated equipment and lathes.
Marles said the investment reflected the government’s ongoing partnership with the company.
“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,” he said.
“Together, these two industrial forging capabilities will further enhance Australia’s self-reliance.”
The government said the initiatives form part of a broader investment of between $26 billion and $36 billion over the next decade through the 2026 Integrated Investment Program, aimed at building guided weapons and explosive ordnance stocks, strengthening supply chains and supporting domestic manufacturing.
“We look forward to working with Rheinmetall NIOA Munitions on this significant first step which will reshape the future of munitions manufacturing in Australia,” Marles said.
