Australian ammunition company NIOA plans to set up shop at the Australian government’s munitions factory in Benalla in north-eastern Victoria.

Minister for Defence Christopher Pyne announced NIOA’s tenancy at the facility at LAND FORCES 2018 on Tuesday.

The Minister said NIOA would upgrade Defence’s existing 84mm Carl Gustav inventory to meet current specifications in partnership with Saab Defence.

The work is expected to start within 12 weeks.

Further, the Minister said additional business cases were currently under active review by Defence for follow-on work.

These are centred on contracts NIOA, an Australian prime contractor, recently won, including a Major Munitions Contract that included 120mm tank ammunition, the Army’s future 155mm artillery ammunition and 30mm ammunition for the Boxer Combat Reconnaissance Vehicle.

“Being able to produce our own ammunition of all types in Australia is vital, and so it’s great that NIOA will help deliver this,” Mr Pyne said.

“NIOA’s work in Benalla will build further on their work supplying ammunition to Defence, and leverage their partnerships with some of the world’s leading munitions companies.

“I look forward to NIOA producing and eventually exporting munitions from Benalla to our friends and allies.”

Mr Pyne said the NIOA tenancy provided increased security of employment for staff at the government factories and ensured the facilities’ ongoing financial viability for the next generation.