- Rheinmetall Defence Australia (RDA) and NIOA will establish an advanced forging and manufacturing facility in Maryborough, Queensland.
- The forging and manufacturing facility will produce artillery shell cases and other munitions-related products for supply to the Australian Defence Force (ADF) and for export to allied nations around the world via Rheinmetall’s Global Supply Chain.
- The facility will be constructed, commissioned and operated under a proposed joint venture between Rheinmetall (51%) and NIOA (49%).
- The ADF - through its supply arrangement with NIOA and Rheinmetall - currently imports artillery shell cases from overseas for use by the Australian Army in both training and military combat. Production from the Maryborough facility will replace imported munitions and will supplement Rheinmetall’s existing munitions manufacturing base to meet demand from customers overseas.
- Critically, the forging and manufacturing facility will ensure that future munitions supplies to the ADF will be Australian-made and create Australian Industry Capability for current and future munitions programs.
- The joint venture proposes the construction of a new, high tech manufacturing plant located on a greenfield site within an existing industrial precinct in Maryborough, Queensland.
- The forging and manufacturing facility will create up to 100 direct, long term and highly skilled jobs in the Maryborough and Fraser Coast region.
- The capital cost for the project is in excess of $60 million. The Federal Government has announced it will provide financial support for establishment of the facility in the order of $28.5 million under the Commonwealth’s “Regional Growth Fund”.
- The proposal to construct an advanced forging and manufacturing facility is subject to final approvals. These include applications for support from both the Queensland Government and the Fraser Coast Council.
Rheinmetall AG, based in Düsseldorf, is an international technology group specialising in security and mobility. In fiscal year 2017, the Group’s Defence subsidiaries generated annual sales of €3,036 million employing some 11,232 dedicated workers.
Established in 1973, NIOA has grown to become Australia’s largest privately-owned supplier of arms and ammunition to the sporting, law enforcement and military markets and prides itself on providing complete system solutions inclusive of through life support to Defence and Law Enforcement customers.
What will the
- The facility will include a hydraulic press forge, heat treatment, and machining processes. There will be significant investment in leading edge equipment and machinery, leading to highly skilled jobs and training opportunities.
- The facility will manufacture large calibre artillery projectile shells with a capacity of 30,000 artillery shell cases per year.
- An artillery shell case is an inert metal body, measuring approximately 155mm in diameter, 690mm in height, and weighing around 36 kilograms.
- The shells produced at the facility will then be supplied to various factories throughout the world to be completed.
- Natures of artillery rounds vary and include training variants, illumination and screening smoke as well as high explosive rounds. The completed rounds are fired by artillery such as the Australian Army M777 lightweight towed howitzer.
- Under the joint venture agreement, NIOA will purchase its aggregate need of 155mm shells for delivery to the ADF under its current contractual arrangements. The remaining output will be sold into the Rheinmetall Global Supply Chain as exports.
- The building construction cost of a fit for purpose Projectile Forging Plant is expected to be $15 million and take 22 months to complete.
- All of the skills required to build these facilities are available in the Fraser Coast region.
- The construction phase of this project is expected to support 78 jobs, comprising 27 direct construction positions, 44 indirect jobs for the region in other industrial jobs and 7 consumption related positions.
- In addition to these local jobs, it is expected that 48 jobs will be created outside the region with total job creation in the construction phase of 126.
- The operational phase of production is expected to create up to 100 local direct manufacturing positions generating over $6 million in direct annual wages and salaries.
- These 100 new jobs will create benefits across other industries such as retail, property and transport which is projected to be a further 87 jobs. A further 74 jobs are expected to be created outside the local region.
- The total job creation from the operational phase of this project is estimated to be 326.
Total Jobs Created
- The total job creation from the construction and operational phases is estimated to be 452.
HAS THE FACILITY BEEN APPROVED?
No. The facility is subject to a final detailed Business Case to be mutually approved by Rheinmetall Defence, NIOA and the Federal Government. The Federal Government has allocated $28.5 million to support the business case under the Regional Growth Fund. Additional commitments from the Queensland Government are currently under active negotiation and cooperation from the Fraser Coast regional council will be sort. The time frame for completion of the final business case is expected to be during the first quarter of 2019.
IF THE FACILITY IS APPROVED, WHEN WILL CONSTRUCTION COMMENCE?
Construction is anticipated to commence in the second half of 2019.
IF THE FACILITY IS APPROVED, WHEN WILL IT BE FULLY OPERATIONAL?
Construction of the facility is expected to be completed in 2021. The commissioning process will then commence which will include low rate and initial production. Full rate production is expected to occur in 2022.
WHAT JOBS WILL BE REQUIRED AT THE FACILITY?
The facility will require a range of skills and positions, including a General Manager, administration, production line managers, engineers, machinists and CNC operators, workplace health and safety, labourers and apprentices.
WHEN WILL JOBS BE ADVERTISED?
The facility will embark on a phased employment campaign commencing in 2020 although a search for a General Manager will commence in 2019.
WILL THERE BE OPPORTUNITIES FOR MY BUSINESS?
The facility is committed to maximising opportunities for the Fraser Coast region, and where possible, will procure goods and services locally.
HOW CAN I FIND OUT MORE?
Please send your enquiries to firstname.lastname@example.org
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