German warhead deal worth $137 million in Canberra's sights

A $137 million deal to build German warheads for new Australian-made missile systems is in Canberra’s sights amid a move to strengthen defence industry ties with Germany.

It comes after new armoured cars built by German manufacturer Rheinmetall began rolling off the assembly line in Queensland.

A letter of intent signed by the Defence Department and warhead makers TDW in Brisbane on Friday was witnessed by Defence Industry Minister Pat Conroy and Germany’s Minister for Defence, Boris Pistorius, on his first visit Down Under.

The Letter will allow the Defence Department and TDW to investigate domestic production of warheads and other parts for two new strike missile systems in Australia; the missiles can be used against warships and land targets.

The deal would support a wider $850m Defence deal with Kongsberg Defence Australia to build factories to build both missiles at a new facility near Newcastle.

Conroy says the letter marks “a major step forward” in strengthening domestic defence manufacturing capability and for export sales.

AUSSIE BUILT FOR GERMAN USE

The first seven Australian‑built Boxer combat reconnaissance vehicles (CRV) have rolled off Rheinmetall Defence Australia’s factory at Redbank in Queensland.

The Defence Department says 211 Boxers will be built for them under a deal with Rheinmetall which includes 25 built in the European nation and now in service with the Australian Army.

More than 50 Australian companies have contracts to support the company to deliver the new fleet, providing work for more than 500 people.

Rheinmetall Australia will also build more than 100 Boxer heavy weapon carriers for the European nation in a contract worth more than $1 billion.

The new Boxer reconnaissance version features a turret with a 30mm automatic cannon and anti‑tank guided missiles.

“This partnership with Rheinmetall also shows how closely Germany and Australia are working together on critical military capabilities,” Conroy says.