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Queensland-based NIOA has welcomed joint venture partner Rheinmetall Waffe Munitions’ (RWM) announcement that the first orders for artillery shells produced in Queensland have been confirmed by the German Bundeswehr.
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Earlier in the month, RWM announced a five-year, $173 million contract for the supply of 32,000 rounds to the German Defence Forces. The framework of the contract allows for an option of a further 11,000 rounds worth $58 million.
Under the joint venture agreement between RWM and Brisbane-based NIOA, the two companies will form a consortium to invest in a $60 million facility in Maryborough, Queensland and create up to 100 direct, long-term and highly skilled jobs in the Maryborough and Fraser Coast region.
The consortium is also seeking support from the Queensland government to finalise arrangements around the new facility. Rheinmetall and NIOA have a significant partnership across a range of munitions products and services in Australia including delivery of Rheinmetall’s Future Family of Artillery Ammunition under the LAND 17-1C2 program.
Visiting the Maryborough site this month, Werner Kraemer, CEO Rheinmetall Waffe Munition and chairman of RNM, announced that the shells for the order will be supplied from the soon to be constructed RNM Maryborough factory.
"Australia is, for us, one of the three major export markets we’ve looked at. We get huge support from the government side, not only in supporting the investment, but also going for the export business," Mr Kraemer said.
Robert Nioa, managing director of NIOA and director of RNM, said, “We want to create a sustainable sovereign munitions manufacturing capability here in Australia and this first order for the Maryborough Forging Plant, being for export to the German Defence forces really underpins this vision.”
Construction of the $60 million state-of-the-art munitions forging facility in the regional Queensland city of Maryborough is expected to commence in the second half of 2019 and be fully operational by 2022. In full production, the facility is expected to create up to 100 new jobs in the Fraser Coast region.
NIOA is an Australian-owned company and one of the largest suppliers of munitions to the Department of Defence. The company has partnerships with many of the world’s leading munitions manufacturers, including Northrop Grumman Innovation Systems (previously Orbital ATK), Vista, Day and Zimmerman, Junghans, and Nitrochemie.
NIOA maintains and exercises reach-back arrangements with engineering and technical support partners to provide specialised design, analysis and test services for the weapons systems we supply and support. NIOA facilities are unique in Australia and provide specialised services and products to Defence and law enforcement agencies across Australia and New Zealand.
