MARYBOROUGH (Realist English). The Australian government has signed a $72 million contract with the joint venture Rheinmetall NIOA Munitions (RNM) to organize production of 155mm M795 artillery shells at the Maryborough facility in Queensland.
The decision secures Canberra’s full control over the critical ammunition supply chain amid growing geopolitical uncertainty.
New plant and production capacity
The facility, which will become operational by the end of 2028, will be the first M795 shell production plant outside North America. Initial output will be 15,000 shells per year, with the ability to surge to 100,000 in wartime mode.
The M795 shells are intended for Australian artillery systems, including the M777A2 towed howitzers and AS9 Huntsman self-propelled howitzers.
According to NIOA CEO Robert Nioa, the plant “utilizes the latest technologies for forging, high-precision machining, heat treatment and painting.”
Sovereignty over imports
The contract with Rheinmetall NIOA Munitions replaces a previous agreement with Thales Australia, signed in October 2024 and canceled in September 2025.
Currently, Australia purchases 155mm ammunition from South Africa under a contract with NIOA and Rheinmetall Denel Munitions, signed back in 2017. The new line in Maryborough will put an end to this dependence.
“Domestic forging ensures Australia controls the supply chain and will always have access to shells, reducing delivery times and better equipping the ADF during times of conflict,” said Defense Minister Richard Marles.
Two plants by 2028
In addition to the Maryborough project, the government is investing $9.2 million to upgrade the Thales Australia plant in Benalla, Victoria. This line will produce 5-inch shells for the Navy.
Thus, by the end of 2028, Australia will have two large-caliber forging facilities.
Both initiatives are part of the Integrated Investment Program worth $26–36 billion over the next ten years under the National Defense Strategy.
The Maryborough plant will create up to 50 highly skilled jobs in the Fraser Coast region.
Already operational plant
The Rheinmetall NIOA Munitions plant in Maryborough itself was commissioned four years ago. Since August 2023, the facility has been producing DM121 German-standard shells — 3,000 per month.
All output from this plant is currently sent to Germany, where the shells are fitted with fuzes and shipped to Ukraine.
The new contract, however, redirects capacity to meet the needs of the Australian Army and allied supply chains.
