Australia signs $850 million missile deal with Kongsberg

The Australian government will contribute up to $850 million in partnership with Kongsberg Defence Australia to manufacture and service missiles at Williamtown near Newcastle. The project, which involves construction of a factory in the Newcastle Airport precinct, is expected to generate more than 500 jobs in the construction phase and almost $100 million in economic benefits to the local area. Once complete, the factory is expected to employ approximately 100 people. The factory will manufacture and service Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM) to be used by the Australian Defence Force (ADF). It will be one of only two facilities in the world capable of producing NSM and JSM with the other site in Kongsberg, Norway. Construction of this factory, expected to start later this year, represents a leap forward for Australia’s defence industry that highlights the government’s commitment to a future made in Australia. The government is including Kongsberg Defence Australia as a strategic partner in the Guided Weapons and Explosive Ordnance (GWEO) Enterprise. The GWEO Enterprise is backed by a commitment of up to $21 billion over the coming decade through the Government’s 2024 Integrated Investment Program. It delivers on priorities in the 2024 National Defence Strategy to both develop the ADF’s ability to precisely strike targets at longer range and manufacture munitions in Australia. The JSM – which can be fitted to the F-35A aircraft – and NSM are modern anti-ship cruise missiles designed to defeat highly capable enemy warships. Both can also be deployed against land-based targets. The NSM will enhance the maritime and land strike capabilities of Hobart class destroyers and Anzac class frigates, and will replace the Harpoon anti-ship missile, supporting the increased lethality of the enhanced surface combatant fleet. HMAS Sydney test-fired an NSM in July 2024. The establishment of the manufacturing facility at the Newcastle Airport precinct will help make Australia more self-reliant and boost war stocks, while supporting the local economy and Australia’s defence industry. Minister for Defence Industry and Capability Delivery Pat Conroy said: “Today’s announcement is another example of the Albanese Government’s commitment to keeping Australians safe while also supporting a future made in Australia. This is about investing in our advanced, high-tech manufacturing industry and developing our sovereign defence industrial base in areas which have been identified as strategic priorities, which in turn means we can accelerate capability delivery to the ADF. We cannot deliver the generational uplift in capability outlined in the National Defence Strategy without our industry partners, and we look forward to working with Kongsberg Defence Australia as a GWEO Strategic Partner.” “Strong international demand for our strike missiles means we are expanding our footprint in selected countries. The missile factory will be the first to open outside Norway, which is testament to the strong and growing relationship between KONGSBERG, Norway and Australia in cooperating to develop current and future defence capabilities,” said Eirik Lie, president of Kongsberg Defence & Aerospace. “We are honoured to have been selected as a strategic partner in the GWEO Enterprise and look forward to continue to invest in Australia to support the armed forces, while generating jobs and economic benefits in the local area,” said John Fry, managing director at Kongsberg Defence Australia. The NSM is an anti-ship missile with superior operational performance and high survivability against all enemy defence systems. The missile was developed by KONGSBERG and first deployed in 2012 by the Norwegian Navy. The air-launched JSM is currently being integrated on the F-35 fighter aircraft. The NSM is the main weapon for the Norwegian Navy’s frigates and coastal corvettes, and has been selected by 13 other countries, including Australia. The JSM has so far been selected by Norway, Japan and the US Air Force. For Editorial Inquiries Contact : Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]