Australian based Rheinmetall NIOA Munitions (RNM) has secured a contract to produce and export ammunition for the US F-35 Joint Strike Fighter programme.
RNM will begin production of 25mm Frangible Armoured Piercing (FAP) projectiles at the federal government-owned Benalla plant in Victoria.
The deal marks the first expansion of the RNM joint venture beyond its $60m artillery shell forging plant in Maryborough, Queensland.
Rheinmetall Waffe Munitions is a global multinational weapons manufacturer, while Australian-owned NIOA is the leading supplier of weapons and munitions to the Australian Defence Force.
The new Load Assemble Pack (LAP) line at Benalla will be capable of producing 20mm to 35mm medium-calibre ammunition.
Rheinmetall Waffe Munitions aims to serve as a secondary source supplier to the US government for the F-35 Joint Strike Fighter programme.
Werner Kraemer, chairman of the board of directors at RNM, said that with the Maryborough project on track, it was time to expand the footprint and capabilities of the joint venture company in Australia.
The line is scheduled to be installed in the first half of 2021 and be at full production by September that year.