An Australian forge, valued at $17,000 AUD ($11,600 USD), is playing a pivotal role in the manufacturing of 155mm artillery shells at a plant, contributing to the supply of much-needed ammunition for Ukraine, despite the Australian military not directly selling to the embattled European nation.
Incredibly adept robots operate within the facility, maneuvering red-hot German steel bars cut from massive 2.5-ton slabs. They place these bars into the forge, extract and cool them in chemically treated water, and shape the projectile’s nose. The shells are meticulously spin-balanced and rigorously inspected to ensure they meet stringent specifications.
Approximately 10 percent of the manufactured shells may fail quality tests and are either remachined or scrapped when they cannot be salvaged, according to company executives during a recent plant tour. The machinery at this unique facility, developed by Australian firm NIOA in collaboration with Germany’s Rheinmetall, is specifically designed and patented for this factory, marking the first munitions plant constructed in Australia since World War II.
This plant operates as a joint venture, with Rheinmetall holding a 51 percent stake and NIOA, a privately-held company, overseeing its operations. Notably, it stands as the sole facility capable of producing larger artillery shells in Australia and was established without direct financial support from the Australian military.
During a tour, NIOA CEO Rob Nioa shared that establishing the plant required an initial investment of $90 million AUD ($62 million USD). NIOA contributed tens of millions from its own funds, utilized a nearly $30 million (AUD) grant from the federal government, and received additional financial assistance from the Queensland state government, which was motivated by high unemployment rates in Maryborough, the town where the plant is located. Nioa also has personal ties to the town, where his family business began in 1973.
In 2017, NIOA secured a contract with the Australian Army to “source” ammunition from “international partners,” including a subsidiary of Rheinmetall, due in part to Australia having lost the domestic capacity to forge in-service shells. Nioa emphasized the importance of restoring this capability to the country.
Construction commenced in 2020, and currently, the plant employs about 120 workers, with expectations for growth in the coming years. NIOA officials reveal that the plant is producing shells at a rate of 20,000 per year, with plans to increase production to 100,000 annually.
However, the shells produced are currently unfilled German DM 121 types, as Australia lacks the capability to manufacture the fuses or explosives needed. Despite government claims of being “sovereign” in ammunition production, it appears that Australia has opted to invest in long-range precision strike capabilities like HIMARS, alongside importing the completed 155mm shells from abroad.
The NIOA-manufactured shells are sent to Germany for filling with explosives and fitting with primers and fuses, ultimately many of them reaching Ukraine as part of German defense packages.
Nioa believes more can be achieved within Australia to bolster both national and allied efforts in supporting Ukraine against the Russian invasion, suggesting that with additional investment, production could be significantly ramped up. He indicated that Australia could play a more proactive role in supporting allied operations, particularly for the US and efforts in the Indo-Pacific region.
The potential for an explosives plant in Mulwala, New South Wales, could provide TNT, though it may not align with the Australian Army’s preference for safer insensitive munitions for transport and storage. Production of fuses could occur at a new facility in Benalla, Victoria, although that requires government action.
“It just hinges on receiving a demand signal from the Australian government indicating the desire for such capabilities,” Nioa stated, while also identifying the production of primers as a bottleneck in the overall munition supply chain in Australia.
