L-R: Deputy Prime Minister Michael McCormack MP; Federal Member for Wide Bay Llew OBrien MP; NIOA Managing Director Rob Nioa; Rheinmetall Defence Australia Director, Weapons and Munitions Rod West. (RHEINMETALL)

Rheinmetall Defence Australia and NIOA have announced the establishment of a new artillery manufacturing facility with the Commonwealth that will see Australian-made munitions for the Australian Army and for export.

Under the agreement Rheinmetall and NIOA will form a consortium to invest in a $60 million facility in Maryborough in Queensland which will create up to 100 long-term in the region. The consortium has also been selected to receive a capital allocation of $28.5 million regional investment grant from the federal government, and is seeking additional support from the Queensland Government for the new facility.

The agreement builds on Rheinmetall and NIOA’s partnership across a range of munitions products and services, including under Project LAND 17 1.C2 program. For the new agreement, Rheinmetall will transfer intellectual property for its artillery manufacturing to Australia for production at the new Maryborough facility.

“The artillery manufactured at the new facility will be delivered to the Australian Army and for export to selected defence forces globally through Rheinmetall’s Global Supply Chain program,” Rheinmetall Defence Australia Managing Director Gary Stewart Mr Stewart said in an October 22 statement. “This will not only ensure supply to Australian soldiers but also elevate Australia’s profile globally as an exporter of high quality munitions.”

NIOA Managing Director Rob Nioa said the support of the Federal Government had enabled the investment to proceed.

“Establishing this facility in regional Queensland has been a critical part of our vision for building this sovereign capability in Australia,” he said. “We look forward to working alongside Rheinmetall, the Commonwealth and our customers to deliver this new capability for the nation and selected customers overseas.”