New agreement moves Maryborough munitions factory forward

The news Diehl Defence & Co and Nioa will collaborate to pursue supply and manufacturing opportunities comes as progress continues to be made at Maryborough’s $60 million munitions factory.

A memorandum of understanding has been agreed to by Diehl Defence & Co and Nioa to collaborate pursue opportunities for the supply, manufacture and support of Diehl’s products to the Commonwealth.

The initial scope of the Diehl NIOA co-operation will span across the Full Calibre 127mm naval natures, which will remain a significant capability requirement across the existing and emerging surface combat fleets for years to come and form the core gun system of the new Hunter Class frigates under SEA5000.

The proposed collaboration between Diehl and NIOA is set to optimise Australian industry capability and deliver surety of supply in line with Australian Government policy.

“Working with highly capable organisations such as Diehl is central to our growth and we are very excited by the possibilities that this collaboration will bring,” NIOA CEO Robert Nioa said.

“NIOA has a long and trusted relationship with Diehl which commenced during the initial phases of the LAND17-1C2 program.

“Working on 127mm natures with Diehl will provide sovereign manufacturing of shell cases at the Maryborough forging plant, and filling and finishing within NIOA’s tenancy at the Benalla Munitions Facility.

“We welcome any opportunity to bring leading technologies from Diehl to Australia to enhance the capability of the Australian Defence Force.”

Helmut Rauch, board member of the Diehl Group and CEO of Diehl Defence said he was very pleased about the co-operation.

“At Diehl we have a tradition spanning more than a hundred years of working with strategic partners, both domestic and international, to ensure our position as a world leading defence and technology company is maintained and enhanced,” he said.

“Strategic partnerships are very important to our company and I see the strong corporate culture of NIOA, along with its strong commitment to supporting sovereign defence capabilities within Australia, offering both companies excellent opportunities to develop a strategic business area – we look forward to it.”

Diehl Defence is a leading supplier of high-tech guided missiles, innovative ammunition solutions and special reconnaissance and protection systems.

Its modern system solutions for ground-based air defence set new international standards. Diehl Defence is part of the German Diehl Group, a financially and legally independent family-owned company with 17,600 employees worldwide.

The news comes as progress continues to be made at Maryborough’s $60 million munitions factory.

In March, the installation of the forge got underway at the facility.

The Rheinmetall NIOA plant will create up to 100 direct jobs in the region as well as developing sovereign capability for the Australian Defence Force when it is completed.