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NIOA has partnered with German defence equipment manufacturer Diehl Defence for the local production of naval ammunition.
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As part of the agreement, it is expected that Diehl will undertake a technology transfer arrangement with NIOA, enabling NIOA to locally produce Diehl’s 5” naval munitions including high explosives, practice projectiles and propelling charges.
Diehl has previously supplied 76mm rounds to the Royal Australian Navy.
The pair are also investigating further opportunities, including within Diehl’s guided long-range ammunition capabilities.
Shell case production is hoped to be carried out at the recently built joint venture Rheinmetall NIOA Munitions centre in Queensland, while filling and finishing will be completed in Victoria.
“This agreement paves the way for Diehl to bring its world-leading expertise to Australia to support NIOA in the development of sovereign capability,” Helmut Rauch, chief executive officer of Diehl Defence, said.
“Our highly advanced naval ammunition is used by navies worldwide and ensures the highest level of effectiveness and safety for a warship and its crew.”
Robert Nioa, chief executive officer of NIOA Group, explained that both companies share the same vision.
“Diehl is known worldwide for its ammunition technology. This partnership means we are well positioned to accelerate the Australian manufacture of superior naval munitions, ensuring supply surety for the ADF,” he said.
According to a release from NIOA, the company has invested over $15 million into upgrades for their Victorian plant to enhance manufacturing capabilities, while the $90 million Rheinmetall NIOA Munitions plant in Queensland is a world-leading facility for shell forging.
[Related: NIOA secures LAND 159 contract]
