New missile factory for Newcastle

The Australian government will contribute up to $850 million in partnership with Kongsberg Defence Australia to manufacture and service missiles at Williamtown near Newcastle.

FILE PHOTO (July 2024): HMAS Sydney fires Royal Australian Navy’s first Naval Strike Missile during a SINKEX off the coast of Oahu, Hawaii, as a part of Exercise Rim of the Pacific (RIMPAC) 2024. Photo by Leading Seaman Daniel Goodman.

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.

It will be one of only two facilities in the world capable of producing NSM and JSM – with the other site in Kongsberg, Norway.

Minister for Defence Industry and Capability Delivery Pat Conroy said construction of the new factory, expected to start later this year, represented a leap forward for Australia’s defence industry.

“The government is including Kongsberg Defence Australia as a strategic partner in the Guided Weapons and Explosive Ordnance (GWEO) Enterprise, which is backed by a commitment of up to $21 billion over the coming decade through the government’s 2024 Integrated Investment Program,” Mr Conroy said.

“NSM and JSM – which can also be fitted to the F-35A aircraft – are modern anti-ship cruise missiles designed to defeat highly capable enemy warships.

“Both can also be deployed against land-based targets.

“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.

“HMAS Sydney test-fired a NSM in July 2024.

“The establishment of this 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.

“This is about investing in our advanced, high-tech manufacturing industry and developing our sovereign defence-industrial base in areas 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.”

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