Govt’s new announcement on 155mm production
The Albanese Government has finally signed a $72 million contract with Rheinmetall NIOA Munitions to establish a new forging capability to produce 155mm M795 projectiles for the Australian Defence Force and export, in Queensland.
CAPTION: Marines from the 3rd Battalion, 12th Marine Regiment, stand ready to load M795 high explosive rounds into an M777 lightweight 155mm howitzer during a live-fire exercise in California. US Marine Corps photo by Lance Corporal Sean Searfus, 1st Marine Division.
Yesterday’s announcement by Defence Minister [who insists on calling himself Deputy Prime Minister even when making Defence Portfolio announcements] Richard Marles is the latest update on the on-again-off-again history of this project.
In November 2024, Defence Industry Minister Pat Conroy announced that Thales was selected as the preferred company to build, establish and commission the forge at the Commonwealth-owned Benalla Munitions Facility in Victoria.
Then, in June 2025, Minister Conroy announced he had decided to cease current procurement activity pending a fresh approach to market.
Finally, it now seems the new forging capability for 155mm M795 projectiles will be established at the NIOA facility in Maryborough, Queensland – not in Benalla.
NIOA’s new forge is still expected to begin operating by the end of 2028 and is expected to produce an initial 15,000 rounds a year, with surge capacity of 100,000.
The 155mm M795 projectiles manufactured at this facility will directly support the ADF, for use in military platforms including in the M777A2 lightweight towed howitzer and the AS9 Huntsman self-propelled howitzer.
Domestic forging will ensure Australia has control of the supply chain and will always have access to forged projectiles with reduced lead times.
NIOA Group CEO Robert Nioa said Australia would now have a true sovereign industrial capability for a critical munition supporting the Australian Defence Force as well as allied supply chains.
“This investment is a major vote of confidence in our team and regional manufacturing,” Mr Nioa said.
“With the government’s support, we’re expanding our production capacity, creating new local jobs and skills that stay in the community.”
Defence will begin work with RNM to uptool their facility which is currently forging and finishing approximately 3000 Assegai 155mm projectile bodies per month for filling in Germany.
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