The government of Australia has selected Thales as the preferred tenderer to establish a new domestic forging capability for 155mm M795 artillery ammunition.
The 155mm M795 artillery ammunition, which is used for close-fires capabilities, is used by Australia, the US, and other international allies, with the M777A2 light towed howitzer.
The Australian Defence will collaborate with Thales to construct, set up, and commission the forge at the Commonwealth-owned Benalla Munitions Facility.
This move is expected to create at least 550 jobs and will mark the first dedicated forge outside of the US manufacturing 155mm M795 artillery ammunition.
By 2028, the forge is projected to produce 15,000 rounds annually, with the potential to increase output to 100,000 rounds for global consumption.
In addition, the Australian Government has committed to establishing a facility for manufacturing guided multiple launch rocket systems (GMLRS) in partnership with Lockheed Martin Australia.
This facility is anticipated to generate 70 local manufacturing jobs, with additional employment opportunities arising from the facility's development.
The GMLRS, a long-range precision strike capability, will be produced in volumes viable for global consumption.
This was confirmed during the 2024 Australia-United States ministerial consultations.
The new facility will have the capacity to produce up to 4,000 GMLRS annually from 2029.
This exceeds the current Australian Defence Force demand and contributing to more than a quarter of the current global production.
Australia Deputy Prime Minister Richard Marles said: “Today’s announcement is another example of the Albanese Government’s commitment to developing a more capable military force while also supporting a future made in Australia. In our rapidly evolving strategic circumstances, the ADF must be equipped with capabilities that can hold adversaries at risk.
“The 2024 National Defence Strategy affirmed the need to invest in munitions to build stocks, strengthen supply chains and support a domestic manufacturing capability. Investment in a sovereign GWEO Enterprise that can produce and maintain priority weapons will support the ADF’s transformation to an integrated, focused force.”
Both projects are components of the Guided Weapons and Explosive Ordnance (GWEO) Enterprise, which is supported by an investment of up to A$21bn ($13.9bn) over the next decade.
These initiatives align with the Albanese Government’s Future Made in Australia Agenda and are encapsulated in the 2024 Australian GWEO Plan.
This blueprint aims to bolster Defence’s GWEO stocks, fortify supply chains, and sustain domestic manufacturing capabilities throughout the coming decade.
