NIOA partners with Diehl on naval munitions

NIOA has used the Land Forces 2022 International Defence Exposition in Brisbane to announce a strategic partnership with German defence equipment manufacturer Diehl Defence.

Under the agreement, Diehl will transfer technology to NIOA to enable Australian production of the Diehl 5” naval munition family including high explosives, practice projectiles, propelling charges.

Besides the conventional ammunition portfolio of Diehl, NIOA and Diehl say they are also evaluating possible cooperation in the areas of the guided long range ammunition capabilities and products of Diehl Defence.

Diehl has previously supplied 76mm rounds to the Royal Australian Navy.

NIOA hopes to utilise its newly commissioned joint venture Rheinmetall NIOA Munitions [RNM] plant in Maryborough, Queensland for shell case production, while the filling and finishing would occur at Benalla in regional Victoria where NIOA has a long-term lease at the Commonwealth Government-owned munitions facility.

Diehl Defence CEO Helmut Rauch said the collaboration with NIOA was a significant step forward for the two companies and comes 15 months after they signed a memorandum of understanding to support sovereign munitions manufacture.

“This agreement paves the way for Diehl to bring its world-leading expertise to Australia to support NIOA in the development of sovereign capability,” he said.

“Our highly advanced naval ammunition is used by navies worldwide and ensures the highest level of effectiveness and safety for a warship and its crew.”

“NIOA and Diehl share the same strategic ambitions - to build defence capability," NIOA Group CEO Robert Nioa said. “Diehl is known worldwide for its ammunition technology. This partnership means we are well positioned to accelerate the Australian manufacture of superior naval munitions, ensuring supply surety for the ADF.”

NIOA has invested more than $15 million in upgrades at Benalla over the past two years, including $2m to provide a permanent base for the company and another $13m in manufacturing capabilities.

The NIOA tenancy houses the ADF’s domestic production facilities for primary energetics, pyrotechnics, medium calibre, mortar and tank ammunition, hand grenades, fuzes, primers and various munitions test facilities.

The $90m RNM factory in Maryborough uses a 1250-tonne hot forging press and computerised machinery to produce 155mm projectiles and metal parts for other munition variants.