NIOA Group CEO Robert Nioa has welcomed Rheinmetall NIOA Munitions’ (RNM) appointment as the company to manufacture a key munition for the Australian Defence Force.

Deputy Prime Minister and Minister for Defence, The Hon. Richard Marles today announced that Queensland-based RNM has been selected to produce the 155mm M795 artillery ammunition.

The M795 round is used by Australia, the United States and other international partners for the M777A2 Light Towed Howitzer, a critical close-fires capability.

The RNM forge in Maryborough will be the first outside North America to manufacture the M795 ammunition and will be capable of producing an initial 15,000 rounds each year by 2028 with a surge capacity of 100,000. 

Australian-owned NIOA is a joint venture partner with Germany’s Rheinmetall Waffe Munition GmbH in the $90m Maryborough facility which was commissioned four years ago this month.

The factory is the most advanced of its kind in the world, using the latest technology to perform high tonnage forging operations, precision machining, nosing, heat treating, welding, phosphating and painting. 

Mr Nioa said NIOA was proud to support Defence in responding to the accelerated defence manufacturing priorities outlined in the Australian Government’s Guided Weapons and Explosive Ordnance (GWEO) Plan.

“Australia now has a true sovereign industrial capability for a critical munition, made right here in Maryborough, supporting the Australian Defence Force as well as allied supply chains,” he said.

“This investment is a major vote of confidence in our team and regional manufacturing. 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 the facility which is currently forging and finishing approximately 3000 Assegai 155mm projectile bodies per month for filling in Germany.

The new contract is expected to create another 50 jobs on top of the 125-strong RNM workforce, shoring up regional advanced manufacturing jobs and building Australia’s sovereign defence capabilities.

A worker at the Rheinmetall NIOA Munitions facility at Maryborough in Queensland checks one of the Assegai 155mm artillery shells. The company has been awarded a $72 million contract to forge the M795 casings.