Australia Signs with Kongsberg to Construct First Guided Missile Production Factory
The Australian Department of Defence signed a contract with Kongsberg Defence Australia to begin constructing the first guided missile production factory based in the Newcastle Airport Precinct in New South Wales.
In August 2024, the Australian Government announced an $850 million investment towards the project with Kongsberg towards the factory producing naval strike missiles (NSM) and joint strike missiles (JSM).
In a significant development for Australia’s defense capabilities, the factory is set to become the first of its kind in the country. According to Air Marshal Leon Phillips OAM, Chief of Guided Weapons and Explosive Ordnance (GWEO), this facility will be the first outside of Norway to manufacture and maintain both the NSM and JSM. The factory will not only supply missiles to the ADF but also to international partners, thereby enhancing regional security and contributing to a more robust and reliable global supply chain for guided weapons.
The project reflects the objectives of the Australian GWEO Plan laid out by the government in 2024, aligned with the 2024 National Defence Strategy and Integrated Investment Plan. The Australian Government has allocated AUD16-21 billion ($9-12 billion), five percent of the Integrated Investment Plan, towards the execution of the GWEO plan over the decade.
The contract with Kongsberg Defence Australia falls within the GWEO Plan’s early phase of the manufacturing time horizon with initial manufacturing goals of acquisition of priority war stock, existing weapons manufacturing, and increasing domestically produced components.
The Hon Pat Conroy MP, Minister for Defence Industry and Capability Industry said: “Ultimately, investment in the Australian GWEO Plan will equip the ADF with the capabilities it needs to increase preparedness and strengthen deterrence, and keep Australians safe.”
The GWEO Plan lays out the path that Australia will take to eventually design and produce advanced guided weapons independently and with strategic partners. Much of the GWEO Plan emphasises the long-term importance of developing Australia’s domestic industry capabilities in producing defence material, and enhancing Australia’s military preparedness.