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$850m deal to establish Hunter region domestic missile manufacturing hub

Defence Industry and Capability Delivery Minister Pat Conroy has announced an $850 million partnership with Kongsberg Defence Australia to manufacture and service missiles at Williamtown near Newcastle.

Defence Industry and Capability Delivery Minister Pat Conroy has announced an $850 million 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 and, once completed, the factory is expected to employ approximately 100 people.

In a world first, Kongsberg’s in-country factory will be one of only two facilities in the world capable of producing Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM) with the other site in Kongsberg, Norway, and will also service both missiles to be used by the Australian Defence Force (ADF).

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Minister Conroy said, “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.”

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.

In addition to this, the Albanese 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.

“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,” Minister Conroy said.

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 and comes following the successful test-firing of an NSM by HMAS Sydney at the 2024 RIMPAC exercises held in Hawaii.

More to come.

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