Diehl Defence and NIOA Nominees have signed a memorandum of understanding (MoU) to collaborate and pursue opportunities for the supply, manufacture and support of Diehl’s Products to the Commonwealth.
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The proposed collaboration between Diehl and NIOA is set to optimise Australian Industry Capability (AIC) and deliver surety of supply in line with Australian Government policy.
The initial scope of the Diehl NIOA cooperation will span across the Full Calibre 127mm naval natures, which will remain a significant capability requirement across the existing and emerging surface combat fleets for years to come and form the core gun system of the new Hunter Class frigates under SEA 5000.
NIOA and Diehl's relationship began during the initial phases of the LAND17-1C2 program. Working with organisations such as Diehl is central to NIOA's growth, according to NIOA chief executive Robert Nioa.
"We welcome any opportunity to bring leading technologies from Diehl to Australia to enhance the capability of the Australian Defence Force,” Nioa said.
"Working on 127mm natures with Diehl will provide sovereign manufacturing of shell cases at the Maryborough forging plant, and filling and finishing within NIOA’s tenancy at the Benalla Munitions Facility.
"We are very excited by the possibilities that this collaboration will bring."
Diehl Defence supplies high-tech guided missiles, innovative ammunition solutions and special reconnaissance and protection systems. The collaboration with NIOA to support defence capabilities within Australia is expected to support the Queensland-based weapons and munitions manufacturer's commitment to the development of Australian sovereign capability.
Helmut Rauch, board member of the Diehl Group and CEO of Diehl Defence, said that both domestic and strategic partnerships are key.
"Strategic partnerships are very important to our company and I see the strong corporate culture of NIOA, along with its strong commitment to supporting sovereign defence capabilities within Australia, offering both companies excellent opportunities to develop a strategic business area – we look forward to it!" Rauch said.
NIOA is investing $130 million in domestic munitions and explosives manufacturing over the next five years, including a $60 million artillery shell forging plant in Maryborough, Queensland with joint-venture partner Rheinmetall Waffe Munitions. The company recently secured Stage 1 of Tranche 1 of the LAND 159 program to modernise the Army’s weapons systems, and in 2018 was awarded the $100 million LAND17-1C.2 future artillery ammunition contract.