The new joint-venture Rheinmetall NIOA Munitions (RNM) Forging Plant currently being established at Maryborough in Queensland has received a five-year contract valued at A$173 million for the supply of 32,000 artillery rounds to the German Bundeswehr.
The contract includes a $58 million option for an additional 11,000 shells.
“Australia is, for us, one of the three major export markets we’ve looked at,” CEO Rheinmetall Waffe Munition and Chairman of RNM, Werner Kraemer said in a statement. “We get huge support from the Government side, not only in supporting the investment, but also going for the export business.”
Managing Director of NIOA and Director of RNM, Robert Nioa added, “We want to create a sustainable sovereign munitions manufacturing capability here in Australia, and this first order for the Maryborough Forging Plant, being for export to the German Defence forces really underpins this vision.”
Work on the new $60 million facility is expected to commence later this year, and it is planned to be fully operational by 2022.