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Thales Australia has been chosen to stand up a new domestic capability for manufacturing 155mm artillery shells for the Australian Defence Force (ADF).

Under this deal, Defence will work with Thales to build, establish, and commission a shell forging plant at the Commonwealth-owned Benalla Munitions Facility in Victoria.

Defence Industry Minister Pat Conroy said this project was expected to support at least 550 jobs and produce 15,000 rounds each year by 2028, with capacity to produce up to 100,000 for global consumption.

“This will allow Australia to make ammunition for export markets – delivering more work for Australian businesses as global demand for this round from trusted partners has outstripped current supply,” the Minister told the National Press Club on Wednesday.

 This will also be the first dedicated forge outside of the United States that will manufacture 155mm M795 artillery rounds.

That’s the standard US 155mm artillery round, also used by the ADF in its M777A2 Light Towed Howitzers. It will also be compatible with the new Hanwha AS9 Huntsman self-propelled artillery systems when they enter ADF service.

Currently, 155mm shells used by the ADF are imported from South Africa through a longstanding munitions contract with defence company Nioa.

Announcement of the Thales deal came with other government announcements, including the plan to produce up to 4000 GMLRS (Guided Multiple Launch Rocket Systems) rockets each year from a plant at Orchard Hills, NSW, by 2029.

Earlier this year the government announced that Australia would begin producing GMLRS rounds assembled wholly from US-sourced components, with the first completed next year.

Like 155mm artillery shells, GMLRS rockets are in high demand around the world, mainly due to the Ukraine conflict, with western nations restocking their arsenals.

Minister Conroy said 4,000 GMLRS rounds per year would represent more than a quarter of the current global production and more than 10 times the current ADF demand.

“By producing GMLRS at scale and investing in the development of a capable and resilient Defence industrial base to forge 155mm M795 artillery projectiles, Australia can be more self-reliant and able to accelerate the delivery of capability to the ADF, as well as our international partners,” he said.

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