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Qld government commits $7.5 million to advanced shell manufacturing facility

A $60 million world-leading advanced manufacturing facility is a step closer to development, following the Queensland government’s announcement it would commit $7.5 million to the project.

The shell forging plant proposed by the newly formed joint venture Rheinmetall Nioa Munitions (RNM) is to support local small-to-medium-sized businesses that are part of the industry supply chain.

The CEO of Rheinmetall Waffe Munitions (RWM) (division of Rheinmetall Defence) and chairman of RNM, Werner Kraemer, said the intended forging facility in Maryborough is an essential cornerstone to support the Land 17 programme for the Australian Land Forces.

“It also underpins RNM’s philosophy to create new qualified jobs in the domestic market,” Kraemer said.

“The Maryborough facility will further be a substantial contribution to Rheinmetall establishing a long-term sustainable supply chain for ammunition components serving different export markets.

RNM director Robert Nioa said the new facility will create advanced manufacturing, high-technology jobs, providing opportunities for careers, training and stable incomes across the community.

“Maryborough is an ideal location to create a centre for defence manufacturing, with proximity to Brisbane and future major defence projects such as LAND 400,” Mr Nioa said.

“The shell forging plant will be one of a kind in Australia, contributing to the establishment of sovereign capability in the state to support the Australian Defence Force (ADF) and defence exports, while creating around 100 full-time jobs when the plant is fully operational.”

Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said the shell forging plant proposed by  Rheinmetall Nioa Munitions (RNM) would boost employment and industrial development in the region.

“Up to 100 new full-time jobs will be created when the plant is fully operational in 2022, and there will be additional shifts over the 20 years working life of the facility,” Dick said.

“The state-of-the-art facility will also support local small-to-medium-sized businesses that are part of the industry supply chain.

“Queensland has already forged strong relationships with Rheinmetall after securing the LAND 400 Phase 2 contract that will see 211 Boxer reconnaissance vehicles built in Queensland for the Australian Army.”

The Queensland government has called on the federal government to deliver on its promise of $28.5 million to ensure the project is fully funded and supported.

Site works are expected to commence in second quarter 2019, with the plant to be fully operational by 2022.

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