Australia Plans to Invest $850 Million in Domestic Missile Production
The production of two types of missiles in partnership with Kongsberg Defence Australia will be housed in a new factory near Newcastle airport.
Australia is now manufacturing missiles for the Royal Australian Navy (RAN) and Royal Australian Air Force (RAAF) at a purpose-built facility near Newcastle Airport, where it maintains its fleet of F-35 fighter aircraft. Construction is expected to begin later this year.
It will be done in partnership with Kongsberg Defence Australia, a subsidiary of the Norwegian weapons manufacturer, with over 200 years of experience.
Kongsberg is the only non-American company accepted as a strategic partner in the Guided Weapons and Explosive Ordnance (GWEO) Enterprise, alongside Lockheed Martin and Raytheon.
The Labor government’s 2024 Integrated Investment Program will commit up to $21 billion over the next decade. Minister for Defence Procurement Pat Conroy announced that the government will contribute up to $850 million to build and operate the factory, expected to employ about 100 people during its construction phase costing around $200 million.
“This investment aims to advance our high-tech manufacturing industry and enhance our sovereign defence industrial base. This will accelerate the delivery of capabilities to the Australian Defence Force,” said Conroy.
John Fry, managing director of Kongsberg Defence Australia, believes the new facility will create hundreds of jobs and position the Hunter region as a hub for manufacturing these advanced defence capabilities.
The factory will produce Naval Strike Missiles (NSMs) and Joint Strike Missiles (JSMs) and is the only one outside of Kongsberg, Norway, capable of manufacturing both.
Naval Strike Missiles (NSMs) are already in use on some RAN ANZAC-class frigates and the HMAS Sydney, with plans to introduce them to Australia’s Hobart-class destroyers and ANZAC-class frigates.
JSMs and NSMs are fifth-generation subsonic weapons with advanced capabilities for long-range precision strikes against various targets.
The factory will also support the F-35A fighter jets with JSMs, maintaining their stealth characteristics until firing. The airport will be built on land owned by Newcastle Airport, part of the Astra Aerolab defense and aerospace business park at Williamtown.