As the Indo-Pacific faces heightened military tensions, the Australian government, under Prime Minister Anthony Albanese, is enhancing its defense industry with large-scale domestic production of missiles and munitions. Announced today, the 2024 Australian Guided Weapons and Explosive Ordnance (GWEO) Plan outlines Australia’s strategy to build self-reliant defense capabilities while creating hundreds of jobs.
The government has selected Thales as the preferred tender to establish a domestic forging facility for 155mm M795 artillery shells, essential for artillery systems such as the M777A2, widely used by Australia, the United States, and other international partners. This project, to be implemented at government-owned facilities in Benalla, is expected to generate at least 550 jobs and aims to produce 15,000 shells annually by 2028, with potential for up to 100,000 rounds to meet global demand. This will be the first dedicated forge outside the United States to manufacture this type of ammunition, highlighting Canberra’s commitment to strengthening its strategic production capabilities.
In parallel, the government reaffirmed its commitment to constructing an Australian facility for Guided Multiple Launch Rocket Systems (GMLRS) production in partnership with Lockheed Martin Australia. This plant, slated to begin operations by 2029, will have the capacity to produce up to 4,000 units annually, representing over a quarter of current global output and more than ten times the annual demand of the Australian Defence Force (ADF). This new facility is expected to create around 70 direct manufacturing jobs and several hundred additional roles in facility development. The GMLRS, a long-range, surface-to-surface precision strike capability, will also be available to international partners, further strengthening Australia’s position in the defense sector.
These projects are part of Australia’s broader ambition to establish a national guided weapons and explosive ordnance enterprise, backed by an investment of up to AUD 21 billion over the next decade. Aligned with the 2024 National Defence Strategy, the plan aims to increase ADF ammunition stockpiles, secure supply chains, and build domestic production capability to meet rapidly evolving strategic conditions. Deputy Prime Minister Richard Marles emphasized the importance of this program in equipping the ADF with means to deter and respond to potential threats.