The Australian government has announced a major investment initiative to establish a state-of-the-art missile production and maintenance facility in Newcastle, New South Wales. This facility will focus on the production of Kongsberg Defence & Aerospace (KONGSBERG) strike missiles, marking a significant milestone in Australia’s defense capabilities and KONGSBERG’s global operations.
The new factory is set to bolster the Australian Defence Force (ADF) by enhancing the country’s self-reliance in missile production. This strategic move also represents a considerable expansion of KONGSBERG’s presence beyond its home base in Norway, highlighting the growing defense cooperation between Norway and Australia. According to reports from foreign media outlets, cited by News.Az, the Australian government has committed up to AUD 850 million in collaboration with Kongsberg Defence Australia to bring this project to life. The facility will be located within the Newcastle Airport precinct, approximately 120 kilometers north of Sydney, with construction expected to commence later this year.
Eirik Lie, the President of Kongsberg Defence & Aerospace, underscored the significance of this development, stating that the decision to establish the factory in Australia is driven by strong international demand for KONGSBERG’s strike missiles. “This missile factory will be the first of its kind outside Norway, reflecting the robust and growing partnership between KONGSBERG, Norway, and Australia. Together, we are committed to advancing both current and future defense capabilities,” Lie emphasized.
The establishment of this facility is a key component of Australia’s broader strategic efforts to enhance its defense infrastructure. The government has included Kongsberg Defence Australia as a strategic partner in its Guided Weapons and Explosive Ordnance (GWEO) Enterprise. This collaboration is backed by a substantial financial commitment of between AUD 16 billion and AUD 21 billion over the next decade, as outlined in the 2024 Integrated Investment Program.
John Fry, Managing Director of Kongsberg Defence Australia, expressed his enthusiasm for the partnership and the future prospects it brings. “We are honored to have been chosen as a strategic partner in the GWEO Enterprise. This collaboration allows us to continue our investment in Australia, supporting the armed forces while simultaneously generating significant economic benefits and job opportunities in the local area,” Fry stated.
The new factory in Newcastle will specialize in producing two of KONGSBERG’s most advanced missile systems: the Naval Strike Missile (NSM) and the Joint Strike Missile (JSM). The NSM is a highly regarded anti-ship missile, known for its exceptional operational performance and its ability to survive sophisticated enemy defense systems. Originally deployed by the Norwegian Navy in 2012, the NSM has since been adopted by 13 other countries, including Australia, underscoring its reliability and effectiveness.
In addition to the NSM, the Newcastle facility will also manufacture the Joint Strike Missile (JSM), an air-launched variant of the NSM. The JSM is currently being integrated with the F-35 fighter aircraft, a testament to its cutting-edge design and versatility. This missile system has already been selected by Norway, Japan, and the United States Air Force, further cementing KONGSBERG’s reputation as a global leader in defense technology.
The Australian government’s decision to partner with KONGSBERG is not only a testament to the country’s commitment to strengthening its defense capabilities but also a reflection of the broader geopolitical landscape. As nations around the world seek to bolster their military infrastructures in response to evolving security threats, the Newcastle missile factory will play a critical role in ensuring that Australia remains at the forefront of defense innovation.
This investment is expected to deliver substantial economic benefits to the Newcastle region, creating numerous job opportunities and stimulating local industries. By securing a strategic partnership with KONGSBERG, Australia is positioning itself as a key player in the global defense industry, with the Newcastle facility set to become a cornerstone of this ambitious vision.
