The Australian Government has signed a contract worth A$72m ($50m) with Rheinmetall NIOA Munitions to set up a new forging capability that will manufacture large calibre ammunition for the Australian Defence Force in Maryborough, Queensland.
The facility will be located at a contractor-owned and contractor-operated site, according to a statement released by the Department of Defence on 8 June 2026.
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Slated to become operational by the end of 2028, the facility will initially produce 15,000 rounds of 155mm M795 projectiles annually. The site will have potential to increase output in the future.
According to the department, this agreement supports Australia’s policy of locally producing guided weapons and explosive ordnance (GWEO).
The 155mm projectiles to be made at the new plant are to be supplied for use in ADF platforms, including the M777A2 Lightweight Towed Howitzer and the AS9 Huntsman self-propelled howitzer.
The new forging facility is expected to create up to 50 skilled jobs during construction and the early phase of operations. The government said the project will also upskill the existing workforce at Maryborough.
In conjunction with the Maryborough project, the government has announced an investment of $9.2m in Thales Australia to upgrade and refurbish the naval 5-inch ammunition production line at Benalla, Victoria.
Plans for Benalla include the installation of automated equipment and lathes.
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.”
Australia expects to have two local large calibre forging capabilities by the end of 2028 to provide a secure and modern manufacturing base for defence needs and to allow for potential export opportunities.
The government said domestic production would help maintain control over supply chains and reduce lead times for the ADF, consistent with the 2026 National Defence Strategy and Integrated Investment Program.
The projects announced are part of a wider plan to invest between A$26bn and A$36bn in guided weapons and explosive ordnance over the next decade, aiming to build up stockpiles, reinforce supply networks, and strengthen local defence manufacturing.
In November 2024, Thales was selected as the government’s preferred tenderer to establish a separate domestic forging line for 155mm M795 ammunition, a model routinely used by Australia, the US, and other allies in close-fire operations.
