The Mulwala munitions facility could play a big part of a significant acceleration and scaling up of Australia’s munitions and guided weapons manufacturing capability as part of the federal government’s $19 billion defence review.
Mulwala and Benalla ammunitions facilities could be the perfect fit for Australia’s efforts to advance production of its own military propellants and high-grade explosives as part of federal government’s $19 billion defence review.
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The Albanese government plans to more than double the funding for domestic munitions production of guided weapons and fast-track the purchase of long-range Precision Strike Missiles to deliver the newly released Australian Defence Strategic Review report immediate recommendations.
The 110-page report, which was made public on ANZAC Day eve, is described as the biggest overhaul of Australian defence since World War II.
Mulwala’s munitions facility, which was built back in World War II, continues to be a strategic focus for shoring up the Australian Defence Force (ADF) weaponry capability while delivering more jobs for the local community.
The Mulwala site is included in an Australian Guided Weapons and Explosive Ordnance (GWEO). The GWEO is the Federal Government’s commitment to making more of its parts and weapons on Australian soil due to supply chain vulnerabilities posed by both adversaries and pandemics.
The Australian Defence Strategic Review report recommends the acceleration of developing ADF’s ability to precisely strike targets at longer-range and manufacturing munitions in Australia.
The defence review recommends more than double the investment ($2.5 billion) for the GWEO than what was previously provisioned.
Developing the ADF’s ability to precisely strike targets at longer-range and manufacture munitions in Australia is one of six priority recommendations in the defence review.
While Australia will initially source missiles from overseas to build up stockpiles, US contractors Lockheed Martin and Raytheon are in line to receive billions of dollars to establish domestic assembly plants.
Those factories would become the long-term supplier of missiles for the Australian Defence Force as part of a shift to greater self-reliance.
Crucially from a US perspective, Australian-made missiles would become a source of secondary supply for the American military, which is suffering from production bottlenecks and supply chain shortages.
It is reported that both companies were well-advanced in planning to assemble missiles in Australia and could have their plants ready to begin production within two to three years. The location of the factories could also spark a bidding war among the states with incentives to lure production.
Benalla and Mulwala factories, where military-grade explosives are produced, or south-east Queensland are potential locations for greenfield sites, while Raytheon could also consider Adelaide, where it is assembling a short-range missile.
Lockheed Martin Australia recently signed an agreement with Thales to lease and has since opened a new facility in partnership in Mulwala with a refit of an existing office area.
The Mulwala Facility is the only manufacturing site of military propellants and high-grade explosives in Australia. The plant, first built between 1942-43, was substantially rebuilt at a cost of more than $415 million starting in 2001. Thales has managed the significant investment in state-of-the-art advanced manufacturing equipment at the site since then.
James Heading, Lockheed Martin Australia’s Director of Programs Strategic Capabilities Office for Missiles and Fire Control said the company and Thales Australia have unique and complementary backgrounds, and expertise in the manufacture and delivery of weapons capabilities that together will provide further impetus for the Australian Government’s objective of expanding the national defence industrial and manufacturing capability.
“It will bring Australia a step closer to a national guided weapons capability as well as set us up for potential future export of Australian manufactured products,” Heading said.
Lockheed Martin Australia is headed by CEO Warren McDonald, who is originally from nearby Hay in southern NSW,
McDonald has spent more than 40 years in the RAAF, filling almost every job in the service, from apprentice right up to air marshal.
The Mulwala site is the first co-located presence for Lockheed Martin in Australia. Mr Heading said, “We have also commenced work to identify other potential industrial sites and are positioning to have sustained in-country manufacturing and strong partnerships in place as soon as possible.”
Thales Chief Executive, Jeff Connolly, said: “We are committed to investing in the industrial capability and technology necessary to support the Australian Defence Force (ADF) and the Australian Government’s ambition to accelerate the creation of a Guided Weapons and Explosive Ordnance Enterprise, boosting skilled jobs and helping secure Australia’s national defence capabilities.”
Prime Minister Anthony Albanese said the defence force review would "shape the future rather than waiting for the future to shape us", and its recommendations would make Australia "more self-reliant, more prepared and more secure".
The report recommends that Australia's armed forces switch focus from land-based armour to "longer-range strike capability, with munitions built in Australia,“ Defence Minister Richard Marles said.
