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Australia Taps Thales as Strategic Partner for Ammunition Production

Australia Taps Thales as Strategic Partner for Ammunition Production

The Australian government has selected Thales Australia as one of its strategic partners under the newly published Australian Guided Weapons and Explosive Ordnance Plan. As a key collaborator, the company will help boost the country’s defense capabilities, particularly in enhancing Defence Australia’s GWEO stockpile, strengthening domestic munition manufacturing and supply chain, and speeding up the acquisition of long-range missiles in the next decade.

Thales joins previously announced partners Lockheed Martin Australia and RTX Australia and fellow newcomer Kongsberg Defence Australia. According to the GWEO Plan, their main task is to expedite GWEO inventory delivery and scale Australia’s production and maintenance pathways for its guided weapons and components.

Enduring Trust

Thales, which currently oversees the Commonwealth-owned Mulwala and Benalla munition factories, will focus on establishing a forging capability for 155 mm M795 artillery ammunition and setting up a local production facility for Guided Multiple Launch Rocket System missiles in partnership with Lockheed.

“Today’s announcements are proof of the enduring trust between Thales Australia and the Commonwealth,” Jeff Connolly, CEO of Thales Australia and New Zealand, said in a statement. The chief executive also highlighted the company’s capabilities as a partner, saying that its 730 skilled workers and over 650 local suppliers make it capable of manufacturing munition systems for the Australian Defence Force and international partners.

“This is an example of the strong partnership between government and the private sector in keeping these factories relevant, including considerable investment … from Thales in particular,” Connolly added.

ADF Transformation

Other key goals outlined in the GWEO Plan include a $558 million partnership with Kongsberg Defence to sustain the production of naval and joint strike missiles, a $4.7 billion deal with the United States to procure Standard Missile 2 Block IIIC and Standard Missile 6 long-range missiles, and a $39.4 million investment to develop hypersonic and long-range strike capabilities.

“These GWEO capabilities are an essential part of transforming the ADF into an integrated, focused force capable of safeguarding Australia’s security in the most complex strategic circumstances since the Second World War,” Deputy Prime Minister Richard Marles said in a statement.

Defence Australia’s press release indicated that the Albanese government has earmarked upwards of $10.52 billion in investments to support the fulfillment of the GWEO Plan in the next decade and up to $48.67 billion overall for initiatives and capabilities aligned with the plan.

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