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Memorandum of Understanding to support Sovereign Munitions Manufacture

2 June 2021

Diehl Defence GmbH & Co KG and NIOA are pleased to announce the signing of a MoU to collaborate and pursue opportunities for the supply, manufacture and support of Diehl’s Products to the Commonwealth.

The initial scope of the Diehl NIOA cooperation 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 (AIC) and deliver surety of supply in line with Australian Government policy.

NIOA CEO, Mr. Robert Nioa said “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 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, is very pleased about the cooperation: “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. 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 and a turnover of 3.6 billion Euros.


NIOA was founded in regional Queensland in 1973 and is the largest Australian weapons and munitions Prime Contractor. Committed to the development of Australian sovereign capability, NIOA is investing $130m in domestic munitions and explosives manufacturing over the next five years, including a $60m artillery shell forging plant in Maryborough, Queensland with joint-venture partner Rheinmetall Waffe Munitions, an upgrade of the Commonwealth Government-owned Benalla munitions plant in Victoria and an $11m expansion of its Brisbane warehouse and distribution facility.

The company recently secured Stage 1 of Tranche 1 of the LAND 159 program to modernise the Army’s weapons systems and in 2018 was awarded the $100m LAND17-1C.2 future artillery ammunition contract.