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Rheinmetall NIOA Munitions (RNM) has announced that construction of a $60 million munitions forging facility in Maryborough, Queensland, will commence after it received Commonwealth commitment to support the project.
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The federal government will commit $28.5 million towards the "state-of-the-art" facility from the Regional Growth Fund after conducting a review of the RNM joint venture's proposal.
CEO of Rheinmetall Waffe Munition and chairman of Rheinmetall NIOA Munitions, Werner Kraemer, has confirmed that implementation work would begin "immediately" on the facility, which will be used to manufacture advanced artillery shells for domestic and export markets.
“Rheinmetall has identified Australia as a key strategic market for munitions and this joint venture is the cornerstone of Rheinmetall’s strategy to supply artillery shells globally,” Kraemer said.
“We are committed to Australia and the Australian market. Through this commitment we want to create regional jobs and build a sovereign capability by employing locals and building a long-term sustainable supply chain.”
Construction of the new facility is expected commence in the second half of 2019, and be fully operational by 2022.
Managing director of NIOA and director of RNM, Robert Nioa, said, “The facility would underpin important changes in the local community and the wider Australian defence community.
“The establishment of this new manufacturing facility here in Maryborough will not only help create local jobs but will also help ensure that future munitions supplied to the ADF will be made right here in Australia.
“We want to create a sustainable sovereign munitions manufacturing capability here in Australia and this backing by the federal government really underpins this significant investment and will ensure we deliver not only local benefits, but economy-wide benefits.”
Nioa also hailed the impact of federal member for Wide Bay Llew O’Brien for “fighting to secure the project for the Fraser Coast region”.
“Llew O’Brien has been a strong supporter of this project right from the start. Without his persistent efforts, I very much doubt we’d have achieved this outcome for Maryborough and the wider region,” Nioa said.
“It’s pleasing to see the local federal member of parliament working with ministers – the Deputy Prime Minister, the Defence Minister and Defence Industry Minister – to deliver great outcomes for their local community.”
The federal government’s Regional Growth Fund seeks to support projects of greater than $20 million investment considered transformational to a regional economy.
