The federal government has signed a 72 million dollar contract with the German manufacturer Rheinmetall to produce ammunition on Australian soil. The deal was unveiled as a major defence spending announcement, with the stated aim of building up the country's capacity to make its own munitions. It marks another step in efforts to strengthen domestic production rather than relying solely on supplies from overseas.
Under the contract, the manufacturing will be based at Maryborough in Queensland, on the Fraser Coast. The plant is intended to anchor a local supply of ammunition, bringing the work and the associated jobs to the regional centre. Locating the facility there ties the project to a specific community rather than to a capital city or an overseas site.
Production is scheduled to ramp up over the next few years, with the facility expected to be operating in 2028. Once it is running, it is projected to turn out around 15,000 of the projectiles each year. The figure gives a sense of the scale the government is aiming for as it seeks to establish a reliable domestic output of the munitions.
The projectiles produced at the plant are intended for use by the Australian Defence Force. By manufacturing them locally, the government is seeking to secure a steady pipeline of ammunition for the military, reducing the risks that can come with depending on external suppliers. The announcement frames the investment as part of a broader push on defence capability.
The path to the contract was not straightforward. The work was initially awarded to a French company, but the government said last year that it would reassess the arrangement. Following that review, it has now confirmed that the contract has instead gone to the German manufacturer Rheinmetall, a shift that became clear only as the latest details emerged.
The announcement was made by the government as part of its defence agenda, with senior ministers including Defence Minister Richard Marles attached to the rollout. Presented as a significant commitment to local industry and to the Defence Force, the 72 million dollar deal positions Maryborough as a centre for Australian-made munitions in the years ahead, with output set to begin flowing from 2028.