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Privately owned global munitions company NIOA Group has detailed ambitions to improve critical 155mm artillery shell production in Australia.
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NIOA Group chief executive and deputy chairman of Rheinmetall NIOA Munitions (RNM) Rob Nioa detailed the expansion plan during a tour of the $90 million facility in Queensland.
RNM was commissioned in June 2022 and serial production for export to Rheinmetall in Germany began in December of the same year. The forge was originally constructed to produce approximately 30,000 DM121 projectiles per year for filling in Germany.
“The RNM facility utilises state-of-the-art technology to perform high tonnage forging of 155mm artillery shell cases,” Nioa said.
“It was designed with expansion in mind from the outset and is now capable of up to 41,000 projectile bodies per year.
“We have the flexibility to allow forging and metal parts manufacture of other munitions natures such as 81mm and 120mm mortar plus naval large calibre ammunition.”
RNM is currently forging and finishing approximately 3,000 155mm projectile bodies per month for export to Rheinmetall of Germany. The facility has a permanent staff of 106 and operates a 24-hour, three-shift production roster.
“NIOA has delivered and integrated the advanced Assegai 155mm munitions into the Australian Defence Force’s current artillery systems under the LAND 17-1 C.2 Future Artillery Ammunition program. The 155mm is now the most sought-after artillery calibre in the world,” Nioa said.
"Since the Ukraine-Russia war began, some published estimates put Ukraine’s usage at 8,000 rounds per day while NATO estimates Russia is firing up to 30,000 per day. Israel’s war on Hamas has added to the global supply pressure
“Western allies have quickly realised stockpiles were not high – and they were unprepared to support a sustained major land conflict.
“The US is ramping up production, spending billions on new and upgraded plants around the country with army officials stating a goal of 100,000 shells a month by 2025.
“Our German JV partner Rheinmetall recently received its largest order in company history record order for 155mm artillery ammunition | Rheinmetall valued at €8.5 billion to replenish German, Ukrainian and other allied stocks with deliveries to start in 2025.”
NIOA is contracted for current supply to the German Bundeswehr which has provided 241,000 rounds of 155mm ammunition military support for Ukraine.
During the recent joint statement on Australia-US Ministerial Consultations (AUSMIN) 2024, defence ministers specifically highlighted Australia’s investment in the manufacture of 155mm M795 munitions, while in a joint ministerial announcement in April 2023, 155mm artillery ammunition was specifically called out as a priority.
“RNM has the capability to load, assemble and pack both training and high explosive variants of the Assegai projectile bodies at the Australian government-owned Benalla munitions facility in Victoria where NIOA has a long-term tenancy,” Nioa said.
“This would provide direct support to the sustainment of Defence’s Assegai fleet which comes into service for the Australian Defence Force in 2024 as well as giving Australia a true sovereign capability for complete round 155mm manufacture.
“With further investment in equipment, processes, and implementation of continuous operations, RNM has a surge capacity of 120,000–130,000 projectiles per year.
“In this time of global uncertainty, Australia can’t continue to rely on off-the-shelf purchases of critical munitions such as the 155mm round from allies and foreign-owned defence primes. To be a credible deterrence in the Indo-Pacific, Australia needs to be a robust contributor to the allied industrial effort.
“That means investing in munitions infrastructure such as we have here in Maryborough and a clear allocation of work so we can support the ADF in defending our nation.”
