Kongsberg Defence Australia has officially opened its Newcastle office, marking another major milestone for the company. The new premises will accommodate Kongsberg Defence Australia’s expanding local workforce, which has more than doubled this year.
The Newcastle office forms part of KONGSBERG’s broader investment in the Hunter Region, including the establishment of a state-of-the-art missile manufacturing and maintenance facility at the Astra Aerolab precinct near Newcastle Airport, Kongsberg’s first missile factory outside Norway.
The move follows the Commonwealth of Australia’s commitment for the local missile manufacture and maintenance of the KONGSBERG Naval Strike Missile (NSM) and Joint Strike Missile (JSM), creating over 500 jobs during the construction and establishment phase of the program, and injecting more than $100 million into the Hunter’s local economy.
Once completed and operational, this factory will commence production in 2027 and will significantly expand KONGSBERG’s capacity in Australia, creating 100 highly skilled jobs and strengthening Australia’s sovereign defence capability.
“The opening of our Newcastle office is another tangible step towards KONGSBERG delivering upon its commitments as a Strategic Partner to the Commonwealth’s Guided Weapons and Explosive Ordnance Enterprise. We are investing in people and partnerships to ensure that KONGSBERG’s proven technology can be manufactured and maintained right here in the Hunter, for the Australian Defence Force.” said John Fry, Managing Director, Kongsberg Defence Australia.
The new office will serve as a base during the construction of the Kongsberg Missile Factory, supporting Kongsberg Defence Australia’s growing local engineering, supply chain and project teams.
“Newcastle and the Hunter region is at the heart of Australia’s future defence manufacturing capability. We have partnered with local developer Greater Newcastle Aerotropolis Pty Ltd, EJE Architects, and Multiplex, who in turn bring many local companies to support construction and delivery of this facility, creating lasting benefits for the region,” says Josh Scanlon, Kongsberg Defence Australia’s recently appointed Director Operations – Kongsberg Missile Factory.
One year of progress on guided weapons
The one-year anniversary of the Guided Weapons and Explosive Ordnance (GWEO) Plan has been marked by the opening of an office in Newcastle dedicated to the $850 million missile manufacturing partnership with Kongsberg Defence Australia. The new Kongsberg office is an important milestone in the partnership which is creating hundreds of jobs in the Hunter and is expected to pump $100 million into the local economy. It will see Australia home to only the second factory in the world, and the first outside of Norway, to produce the Joint Strike Missile and Naval Strike Missile. This missile manufacturing hub represents a deepening in Australia’s defence relationship with Norway. It will not only supply missiles to the Australian Defence Force (ADF), but also create opportunities for exporting missiles to trusted partners around the globe.
Released in October 2024, the GWEO plan is a blueprint for a generational uplift in Australia’s defence industrial capabilities. The Government is working closely with industry to ensure speed to capability through a number of key initiatives outlined in the GWEO Plan, including:
- Establishing a Guided Multiple Launch Rocket System (GMLRS) missile manufacturing capability in Australia, with production on track to commence by the end of 2025.
- Investing up to $850 million with Kongsberg Defence Australia to build a Naval Strike Missile and Joint Strike Missile factory in New South Wales, with construction underway and missile production on track to start in 2027.
- Committing $11 million to establish a facility at Defence Establishment Orchard Hills to assemble and maintain explosive components for Naval Strike Missile and Joint Strike Missile.
- Funding more than $500 million to uplift Australian companies to manufacture and maintain guided weapon components.
- Delivering an initial commitment of $22 million towards the establishment of a solid rocket motor manufacturing capability.
- Signing agreements with the United States to support:
- Assembly and future co-production of GMLRS missiles;
- Transfer of Intellectual Property and standards for 155mm artillery; and
- Access to co-development, co-production and co-sustainment of Precision Strike Missiles (PrSM) under a cooperative program.
- Signing a Joint Statement of Intent with Lockheed Martin and the United States Department of War, paving the way for further co-development and production of critical long-range fires, beginning with variants across the GMLRS family of munitions and the PrSM.
- Opening a joint office in Huntsville, Alabama, to serve as the central hub for coordination between Australia and the United States on the acquisition and development of the PrSM capability, and to oversee its production and sustainment.
- Committing $7 billion to acquire Standard Missile 2 Block IIIC and Standard Missile 6 from the United States.
- Committing $142 million to acquire the Joint Strike Missile and $650 million to acquire additional stocks of Advanced Anti-Radiation Guided Missile – Extended Range.
- Acquiring additional quantities of AIM-120 Advanced Medium Range Air-to-Air Missiles and AIM-9X Sidewinder missiles.
- Contracts have been awarded for torpedo production following the March 2025 agreement with the United States for additional MK-48 Heavy Weight Torpedo.
The focus on speed to capability has seen Defence already introduce a number of these capabilities into service following the successful live test firings of Naval Strike Missile, Standard Missile 6 and Tomahawk cruise missile in 2024, and the Long-Range Anti-Ship Missile and Precision Strike Missile in 2025.
Minister for Defence Industry Pat Conroy said: “In just 12 months, Australia has come a long way towards sovereign missile manufacturing and increasing our long-range strike capabilities, backed by a commitment of up to $21 billion in the Defence Integrated Investment Program. Australian industry is at the heart of this plan, with more than $500 million set aside to uplift Australian companies and to help insulate us from global supply chain pressures. By the end of this year, we will begin manufacturing Australia’s first guided missile on home soil – a significant feat that will strengthen sovereign Australian supply chains and get these weapons into the hands of the war fighter sooner.”
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