$7.5M grant brings munitions factory one step closer

A MUNITIONS factory tipped to bring hundreds of jobs to the Maryborough region is one step closer after the State Government granted $7.5 million to the joint venture project.

The $60 million project, announced by newly formed joint venture Rheinmetall Nioa Munitions last year, will produce artillery shell casings for use by the Australian Defence Force and export to selected defence forces overseas.

State Development Minister Cameron Dick will reveal the grant plans in Maryborough today.

He said the project would boost employment and industrial development in the region.

"Up to 100 new full-time jobs will be created when the plant is fully operational in 2022, and there will be additional shifts over the 20 years working life of the facility," Mr Dick said.

"The state-of-the-art facility will also support local small-to-medium-sized businesses that are part of the industry supply chain."

In November last year, a strategic advisor was appointed to oversee the development of the factory.

Maryborough MP Bruce Saunders said shell forging plant will add to the city's long and proud manufacturing history.

RNM Director Robert Nioa said the new facility will create advanced manufacturing, high-technology jobs, providing opportunities for careers, training and stable incomes across the community.

"Maryborough is an ideal location to create a centre for defence manufacturing, with proximity to Brisbane and future major defence projects such as LAND 400," Mr Nioa said.

"The shell forging plant will be one of a kind in Australia, contributing to the establishment of sovereign capability in the state to support the Australian Defence Force (ADF) and defence exports, while creating around 100 full-time jobs when the plant is fully operational.

"The shell forging plant will not have the capability to 'charge' the shell and therefore operates without the risk of managing explosives. 

"Site works are expected to commence in the second quarter of 2019, with the plant to be fully operational by 2022."