The $60 Million Facility Proposal of NIOA and Rheinmetall Waiting for Final Approval
BRISBANE, Australia (BulgarianMilitary.com) – The largest Australian privately-owned company supplying weapons, ammunition and technical support to commercial, military and law enforcement markets NIOA announced on 19th October 2018 today that the Federal Government would support a proposal for the establishment of an advanced $60 Million forging and manufacturing facility in regional Queensland (in the regional city of Maryborough), learned BulgarianMilitary.com
The proposal comes from NIOA and Dusseldorf-based Rheinmetall AG and it will be manufactured artillery shells and other munitions products for the Australian Defence Force and export to selected defence forces overseas at the facility. For that purpose the companies have established a joint venture and applied to the Commonwealth for funding support.
The application for funding of $28.5 million was approved under the Federal Government’s “Regional Growth Fund”, the goal of which is to support investment projects exceeding $20 million and which are considered to be important for the development of the economy of the region. However, the project remains subject to final approval and meanwhile NIOA and Rheinmetall are also seeking additional support from the Queensland Government.
NIOA Managing Director Robert Nioa commented, “NIOA is proud to partner with Rheinmetall to establish an important project that will create a sovereign military capability in Australia and hundreds of jobs in regional Queensland.”
The new facility would replace munitions imported into Australia and in that connection the Managing Director of Rheinmetall Defence Australia Gary Stewart for his part shared, “The artillery manufactured at the new facility will be delivered to the Australian Army and for export to selected defence forces globally through Rheinmetall’s Global Supply Chain program. This will not only ensure supply to Australian soldiers but also elevate Australia’s profile globally as an exporter of high quality munitions.”
Recently Rheinmetall was selected as the supplier of the Australian Army’s new fleet of Combat Reconnaissance Vehicles under the $5.2 billion Land 400 Phase 2 program.
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