Mulwala munitions the “envy of the world”

By Jared Loughnan

Nov 6, 2024

The Federal Government will speed up investment into the Mulwala’s munitions facility as part of Guided Weapons and Explosive Ordnance (GWEO). The 2024 Australian GWEO Plan is critical to boosting the domestic manufacture of missiles and munitions and supporting uplift of stockpiles in Australia.

Mulwala and Benalla’s munitions facilities are the “envy of the world” according to Thales CEO Jeff Connolly who made the comment after Thales was selected as the preferred tenderer as part of the Federal Government’s Guided Weapons and Explosive Ordnance (GWEO) last week.

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The tender announcement has reinforced the commitment from the federal government in October 2023 to invest $220 million in munitions production in Mulwala and Benalla.

Mr Connolly welcomed Thales’ appointment as a GWEO Strategic Partner under the Government’s 2024 Australian GWEO Plan released last Wednesday.

“Today’s announcements are proof of the enduring trust between Thales Australia and the Commonwealth,” Mr Connolly said.

“The Commonwealth-owned facilities at Mulwala and Benalla are the envy of the world; most nations shut their facilities at the end of the Cold War.”

Pictured visitng the Mulwala facility in 2023 was Air Marshal Leon Phillips, Federal Minister for Defence Industry and Capability Delivery Pat Conroy, Vice President of government relations at Thales Andrew Downs, and Managing Director Australian Munitions Dion Habner following the government's announcement of a $220 million investment.

Mr Connolly commended the announcements by Federal Minister for Defence Industry and Capability Delivery Pat Conroy, to drive uplift of GWEO industrial capability, particularly:

• Thales Australia’s down-selection to deliver Australia’s first government-owned forging capability for 155mm M795 artillery ammunition.

• The government’s commitment to establish an Australian facility to manufacture GMLRS missiles in partnership with Lockheed Martin Australia.

“Without these facilities (Benalla and Mulwala), we would be unable to manufacture key GWEO capabilities, such as 155mm M795 artillery ammunition and GMLRS missiles,” Mr Connolly added.

“Thales employs over 730 skilled staff at Mulwala and Benalla to manufacture munitions systems for the ADF and international partners.

“We also have an established regional supply chain with over 650 local suppliers providing solutions to key chemicals, components and materials.”

The 155mm M795 artillery ammunition are used by Australia, the United States and other international partners for the M777A2 Light Towed Howitzer, a critical close-fires capability.

Defence will work with Thales as the preferred company to build, establish and commission the forge project which is expected to support at least 550 jobs.

The forge will produce 15,000 rounds each year by 2028, with capacity to produce up to 100,000 for global consumption. It will also be the first dedicated forge outside of the United States that will manufacture 155mm M795 artillery ammunition.

Minister Conroy visited the Mulwala facility in October 2023, announcing the federal government’s $220 million commitment in munitions production.

Federal Minister for Defence Industry and Capability Delivery Pat Conroy announcing the $220 million investment in Mulwala in October, 2023.

He said that production will significantly boost industrial capacity through infrastructure redevelopment at both sites – ensuring each site is equipped to support future productions demands such as 155mm artillery ammunition - new explosives at Mulwala and enhanced munition manufacturing procedures, including non-destructive testing.

Developed by Department of Defence, the new Resonant Acoustic Mixing technology in place at Mulwala will produce a broader range of advanced munitions, faster and more safely.

This will increase the capacity for production of BLU-III (AUS) aerial bombs used by the Royal Australian Air Force.

The Federal Government is rapidly establishing domestic manufacturing of missiles and munitions at scale under a plan that bolsters Australia’s defence capabilities while creating hundreds of jobs.

The 2024 Australian GWEO Plan is critical to boosting the domestic manufacture of missiles and munitions and supporting uplift of GWEO stockpiles in Australia.

Thales Australia’s 155mm M795 forging solution will build on the existing forge capability at Benalla and will be the only capability outside the United States that meets the requirements of the Australian Defence Force, the United States Military and other international partners.

Thales Australia has signed a Memorandum of Understanding (MOU) with Lockheed Martin Australia to advance the development and production of the Guided Multiple Launch Rocket System (GMLRS) in Australia.

“This an example of the strong partnership between government and the private sector in keeping these factories relevant – including considerable investment of approximately $30m from Thales in particular,” Mr Connolly said.

“Thales Australia’s partnership with Lockheed Martin is an important step on the pathway to an accelerated sovereign GMLRS capability for the Australian Defence Force.”

During his visit last year Minister Conroy said the Mulwala and Benalla ammunition factories underpin Australia’s ability to develop critical propellants, explosives and munitions for the Australian Defence Force.

“This is essential to the future of the Australian Defence Force (ADF); it is essential to us handling the deteriorating strategic circumstances we face, where we see the greatest arms build-up in our region since World War II,” he said.

“The investment will allow Australia to rely less on global supply chains.

“We’ve learned the lessons from the Ukraine conflict that is going on right now and the COVID supply chain crisis - we have to move from just-in-time production to just-in-case capabilities.”

Minister Conroy said that last week’s announcement demonstrated the government’s commitment to manufacturing munitions in Australia, to develop the sovereign defence industrial base in areas of strategic priority.

“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.