Australian defence company NIOA and US firm General Dynamics Ordnance and Tactical Systems (GD-OTS) have entered into an agreement to jointly examine supplying 70mm rockets for the Australian Army’s AH-64E Apache helicopters.
The collaboration could see the companies assemble these Hydra-70 rockets in Australia, contingent on approvals from the US Government.
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The arrangement would build on existing Foreign Military Sales (FMS) arrangements that currently provide the Australian Defence Force (ADF) with 70mm rockets.
Hydra-70 rockets serve as primary munitions for the ADF’s incoming Apache fleet, which is being acquired under Project LAND 4503.
The rockets are also used as kinetic effectors in Counter-Unmanned Aircraft Systems (C-UAS).
Under the new multi-year framework, NIOA and GD-OTS will consider opportunities for local assembly of the rockets, which could result in shorter delivery times, a more reliable domestic supply, and decreased total lifecycle costs for these munitions.
The companies plan to assess which components can be cost-effectively manufactured in Australia, aligning with the Commonwealth’s Defence Industrial Development Strategy (DIDS).
The aim is to transfer some production to Australia’s defence industry base.
If local assembly proceeds, there may be increased employment at the Benalla munitions facility in Victoria, which is government-owned and operated by contractors.
NIOA currently manages ammunition and explosive manufacturing at this site.
NIOA Australia-New Zealand CEO Ben James said: “This agreement further extends the NIOA/GD-OTS relationship and represents a key sovereign munitions production opportunity in support of the ADF and forward-deployed US troops.
“The 2024 Defence Industrial Development Strategy emphasised the importance of international industrial partnerships to build the strategic weight Australia needs to shape the future and recent international events have further highlighted the critical nature of sovereign supply chains and manufacturing capacity.
“Manufacturing warheads and key munitions for Apache would represent a key step in realising that objective.”
Australia received two AH-64E Apache helicopters from the US in February this year as part of a FMS deal.
The country committed to acquiring 29 of these helicopters following its selection of the platform in 2022.
