Mulwala and Benalla will play a role in Australian weapons manufacturing as part of the government’s $21 billion spend over the next decade.
The Mulwala munitions facility will play a central role in what the government describes as a “US-led global supply chain” for developing missiles.
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Australian Defence Industry Minister Pat Conroy signed a Joint Statement of Intent with the United States in Washington, DC, last Tuesday, October 14, taking a further step towards co-production of guided weapons.
Mr Conroy made special mention of the role local munitions facilities in Mulwala and Benalla will play in Australian weapons manufacturing as part of the government’s $21 billion spend over the next decade to establish a sovereign Guided Weapons and Explosive Ordnance (GWEO) Enterprise.
As part of that plan, Australia will retain hundreds of domestically built missiles each year for use by the Australian Defence Force, with surplus weapons to be sold to close allies.
Mr Conroy said the joint statement recognised that guided‑weapons manufacturing in Australia must be viable beyond domestic demand.
“As identified in the Australian GWEO plan, we intend to begin construction of a new high-rate production facility in Australia,” he said in Washington.
The planned Australian Weapons Manufacturing Complex (AWMC) will be flexible and scalable, expand global manufacturing capacity and reduce dependence on overseas infrastructure.
The AWMC will be constructed in addition to an existing Kongsberg missile factory under construction in Williamtown (near Newcastle), which will manufacture joint strike missiles and naval strike missiles.
“These sites, in addition to our existing government-owned contractor/operator munitions facilities at Benalla and Mulwala, will enable Australia to manufacture munitions at scale, strengthening Australia's Defence Industry and supporting Australia's self-reliance,” Mr Conroy said.
Over time, more components will be manufactured in Australia, including rocket motors and warheads. Thales Australia has been tapped to produce these critical elements at its existing plants in Benalla and Mulwala.
The Thales-run facilities employ over 700 skilled staff at Mulwala and Benalla to manufacture munitions systems for the Australian Defence Force and international partners.
The exact location of the AWMC has not been announced, but the project offers substantial economic, technological, and industrial benefits with at least 70 direct high-skill jobs, and hundreds more during construction and in the supply chain.
The new complex could be co-located with or near Commonwealth-owned munitions facilities such as Mulwala and Benalla, or in an expanded defence industry zone developed near Newcastle, NSW, where the Kongsberg missile factory is being built.
The AWMC is underpinned by an agreement with Lockheed Martin, which will initially supply assembly kits. Over time, more components will be manufactured in Australia, including rocket motors and warheads. Thales Australia has been tapped to produce these critical elements at its existing plants in Benalla and Mulwala.
A Guided Multiple Launch Rocket System (GMLRS) manufacturing line is planned for the AWMC, with a target of producing up to 4,000 missiles annually by 2029. Mulwala’s facility is earmarked as a key player in the supply chain for GMLRS and other munitions.
Pictured visitng the Mulwala facility in 2023 was Air Marshal Leon Phillips, Federal Minister for Defence Industry and Capability Delivery Pat Conroy, Vice President of government relations at Thales Andrew Downs, and Managing Director Australian Munitions Dion Habner.
Mulwala’s role in the GWEO Enterprise
Propellant and explosives manufacturing: Mulwala is the only remaining Australian site that produces military propellants and high explosives.
Collaboration and testing: The facility is collaborating with partners such as Lockheed Martin to test and develop missile warheads, a crucial step toward domestic production.
Supply‑chain integration: Mulwala is being positioned as a key supplier for the new AWMC.
Ongoing development: While Mulwala is not yet producing finished missiles, it is developing the components and capabilities needed for the broader GWEO Enterprise.
Key developments at Mulwala
February 2023: Lockheed Martin opened a new facility, co‑located with Thales Australia at Mulwala, to support manufacturing activities and the development of propellants and explosives
November 2024: Thales was selected as the preferred tenderer for $220 million to deliver Australia’s first government-owned forging capability for 155mm M795 artillery ammunition and to establish an Australian facility to manufacture GMLRS missiles in partnership with Lockheed Martin Australia.
December 2024: Lockheed Martin Australia and Thales Australia successfully test‑detonated four locally designed warheads at Mulwala, including GMLRS-relevant high-explosive warheads. The tests, conducted under a teaming agreement, demonstrated the Australian industry’s ability to design, manufacture and test production‑quality warhead technologies.
September 2025: Thales Australia remains tight-lipped about the future of a billion-dollar contract and the Mulwala munitions facility after. The Department of Defence had axed procurement activity at Benalla, which would have upscaled the manufacture of 155mm M795 artillery projectiles. Defence is reconsidering the size of the future market with indications a future tender could be for increased volume due to global demand.
September 2025: Thales Australia announced it is undergoing several upgrades over the next two years including the installation of a Commonwealth Government-approved solar farm in Mulwala.
October 2025: Defence Industry Minister Pat Conroy made special mention of the role local munitions facilities in Mulwala and Benalla will play in Australian guided weapons manufacturing after signing a Joint Statement of Intent on co-production with US in Washington, DC.
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