The new capability will be established at the contractor-owned and contractor-operated forge in Maryborough, Queensland. It is expected to begin operating by the end of 2028.
The facility is expected to produce an initial 15,000 rounds a year. The government said the capability will have capacity to scale up to higher production volumes.
The project will create up to 50 highly skilled, well-paid jobs during construction and initial operation of the forge. It will also upskill and enhance the existing workforce at the Maryborough site.
The 155mm M795 projectiles produced at the facility will directly support the Australian Defence Force. They will be used in military platforms including the M777A2 Lightweight Towed Howitzer and the AS9 Huntsman self-propelled howitzer.
The government said the announcement means Australia will have two large calibre forging capabilities by the end of 2028. It said this will ensure a sovereign, reliable and modern manufacturing capability supporting Australian-made products for the ADF and providing export opportunities to international partners.
The project is part of the government’s commitment to locally manufactured guided weapons and explosive ordnance. The government said the investment also supports its Future Made in Australia agenda.
Domestic forging is intended to give Australia control of the supply chain and ensure continuing access to forged projectiles. The government said this will reduce lead times and better equip the ADF in times of conflict, in line with the 2026 National Defence Strategy and Integrated Investment Program focus on resilience and self-reliance.
The government also announced a $9.2 million investment in Thales Australia. The funding will modernize and refurbish the existing naval 5-inch production line at facilities in Benalla, Victoria.
The Thales investment will add new automated equipment and lathes to the production line. The government said the work will support domestic manufacturing capability and strengthen supply chains.
The initiatives are backed by an investment of $26 billion to $36 billion over the next decade through the 2026 Integrated Investment Program. The government said the projects support 2026 National Defence Strategy priorities to build guided weapons and explosive ordnance stocks.
“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 high-skilled, well paid jobs,” Deputy Prime Minister Richard Marles said. “The modernisation and refurbishment of our naval 5-inch production line at our facilities in Benalla highlights our enduring and longstanding partnership with Thales Australia.”
“Together, these two industrial forging capabilities will further enhance Australia’s self-reliance,” Marles said. “We look forward to working with Rheinmetall NIOA Munitions on this significant first step which will reshape the future of munitions manufacturing in Australia.”
