(DEFENCE)

Australian ammunition manufacturer NIOA has been awarded an $81.6 million three-year contract to provide 81mm live and practice mortar ammunition to the ADF.

The award, under Project LAND 8115 will see NIOA team with US company Day and Zimmermann to provide the ammunition which can be used for in-service systems as well as a planned lighter weight system being acquired under LAND 136 Phase 1.

“I’m extremely pleased to have been trusted to sustain a vital mortar capability for the Australian Army in addition to other ammunition types we currently provide to the ADF,” NIOA Managing Director, Mr Robert Nioa said in a statement.

“This contract will allow Defence to take advantage of NIOA’s munitions technical and supply experience and further strengthen Australia’s sovereign industrial capability. I’d also commend the Commonwealth for the professionalism they’ve shown at all stages of the tender process and contract negotiations.”

The latest award adds to NIOA’s other major contract, the long-term LAND 17 Phase 1C2 program to provide 155mm ammunition for Army’s M777 howitzer.

“This acquisition will allow Army to sustain its current mortar capability ahead of projects to modernise the 81mm mortar fleet with a lighter weight system,” Defence Minister Christopher Pyne said in a separate statement. “Delivery of products will commence in April 2019 with final deliveries planned for April 2022.”