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Deputy Prime Minister and Defence Minister Richard Marles has announced a significant boost, with the Albanese Government awarding a $72 million contract to Rheinmetall NIOA Munitions to establish a new large-calibre artillery projectile forging facility in Queensland.
The investment will deliver a sovereign production capability for 155mm M795 artillery projectiles, strengthening the Australian Defence Force’s supply chain resilience while supporting the Government’s broader commitment to building a nationally integrated guided weapons and explosive ordnance industry.
The contractor-owned, contractor-operated forge will be established in Maryborough and is scheduled to commence production by the end of 2028. Once operational, the facility is expected to manufacture approximately 15,000 projectiles annually, with capacity available to increase output should demand require.
Construction and initial operations are expected to create up to 50 highly skilled jobs, while also expanding and enhancing the expertise of the existing workforce in the Fraser Coast region.
The projectiles produced at the facility will support key Australian Army artillery systems, including the M777A2 Lightweight Towed Howitzer and the AS9 Huntsman self-propelled howitzer.
The announcement marks a major milestone in Australia's efforts to build sovereign industrial capability, with the nation expected to possess two large-calibre forging facilities by the end of 2028. The expanded industrial base will provide a secure and reliable source of critical ammunition for the ADF while creating opportunities to support allied and partner nations through future exports.
Deputy Prime Minister and Minister for Defence Richard Marles said the investment represented another important step towards building a more self-reliant defence industrial base.
"We are proud to be partnering with Rheinmetall NIOA Munitions to boost domestic manufacturing of 155mm M795 artillery projectiles in Australia, further strengthening our sovereign capabilities and supporting highly skilled, well-paid jobs," Mr Marles said.
The Government says domestic production of artillery projectiles will provide greater control over supply chains, reduce reliance on overseas suppliers and shorten delivery times during periods of heightened demand or conflict.
The initiative aligns with the priorities outlined in the 2026 National Defence Strategy and the Integrated Investment Program, both of which place a strong emphasis on resilience, preparedness and self-reliance.
In a complementary move, the Government has also announced a $9.2 million investment in Thales Australia to modernise and upgrade the existing naval 5-inch ammunition production line at Benalla in regional Victoria.
The upgrade will introduce new automated manufacturing equipment and modern lathes to improve production efficiency and support future demand for naval munitions.
Together, the projects form part of a broader $26 billion to $36 billion investment in guided weapons and explosive ordnance over the coming decade through the 2026 Integrated Investment Program. The funding is intended to expand munitions stockpiles, strengthen sovereign supply chains and support Australia's growing defence manufacturing sector.
The Deputy Prime Minister said the modernisation of the naval 5-inch ammunition production line at Benalla demonstrated the strength of Australia's longstanding partnership with Thales Australia.
"Together, these two industrial forging capabilities will further enhance Australia's self-reliance. We look forward to working with Rheinmetall NIOA Munitions on this significant first step, which will help reshape the future of munitions manufacturing in Australia," Mr Marles added.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
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