News

Thales silent on munitions contract

By Christine McKee

Sep 17, 2025

Defence is keeping its cards close to its chest in relation to the future capacity at its Mulwala munitions facility after axing procurement activity at Benalla last week.

Thales Australia remains tight-lipped about the future of a billion-dollar contract and the Mulwala munitions facility.

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It was revealed last week that the Department of Defence had axed procurement activity at Benalla, which would have upscaled the manufacture of 155mm M795 artillery projectiles.

In 2023, the Federal Government was rapidly establishing domestic manufacturing of missiles and munitions at scale that bolstered Australia’s defence capabilities while creating hundreds of jobs.

Defence tendered for the establishment of a domestic forging capability to manufacture 155mm M795 artillery projectiles.

In October that year, then Defence Minister, Pat Conroy visited the Mulwala facility and announced the Federal Government’s $220 million commitment in munitions production.

He said production would significantly boost industrial capacity through infrastructure redevelopment to ensure each site was equipped to support future production demands.

However, in June this year, Defence announced that notable changes in the global defence industrial base included a surge in international demand for naval 5-inch and significant increase in global capacity to produce 155mm projectiles.

This required Defence to re-assess its manufacturing approach on 155mm projectiles and it was decided to cease the current procurement activity and will refine its 155mm projectile requirements prior to re-approaching the market.

The Yarrawonga Chronicle understands Defence is now reconsidering the size of the future market with indications a future tender could be for increased volume.