The Federal Government will contribute up to $850 million in partnership with Kongsberg Defence Australia to manufacture and service missiles at Williamtown near Newcastle.
The factory in Williamtown will manufacture Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM) to be used by the Australian Defence Force (ADF).
“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,” said minister for Defence Industry and Capability Delivery, the Hon Pat Conroy MP.
The JSM can be fitted to the F-35A aircraft and the 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. HMAS Sydney test-fired a NSM in July 2024.
It will be one of only two facilities in the world capable of producing NSM and JSM with the other site in Kongsberg, Norway.
The factory in the Newcastle Airport precinct is expected to generate more than 500 construction jobs and almost $100 million in economic benefits to the local area.
Once complete, the factory is expected to employ approximately 100 people.
Construction of this factory is expected to start later this year and represents a leap forward for Australia’s defence industry.
The Federal Government is including Kongsberg Defence Australia as a strategic partner in the Guided Weapons and Explosive Ordnance (GWEO) Enterprise.
“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,” said Conroy.
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.
It addresses the priorities in the 2024 National Defence Strategy to both develop the ADF’s ability to precisely strike targets at longer range and manufacture munitions in Australia.
The establishment of the manufacturing facility at the Newcastle Airport precinct will help make Australia more self-reliant and boost war stocks.