Australia to build new missile factory in Newcastle

The Australian government has announced a major investment in establishing a new missile factory in Newcastle, New South Wales, dedicated to producing and servicing Kongsberg Defence & Aerospace (KONGSBERG) strike missiles.

The factory, designed to support the Australian Defence Force (ADF), represents a significant expansion of KONGSBERG's global presence, Caliber.Az reports via foreign media.

The Australian government will contribute up to AUD 850 million ($557 million) in partnership with Kongsberg Defence Australia to build the facility within the Newcastle Airport precinct, located about 120 kilometres north of Sydney. Construction is slated to commence later this year.

Eirik Lie, President of Kongsberg Defence & Aerospace, emphasized the importance of the new factory. “The strong international demand for our strike missiles necessitates our expansion into select countries. This factory, our first outside Norway, underscores the robust and growing partnership between KONGSBERG, Norway, and Australia in advancing current and future defence capabilities,” Lie said.

The factory's establishment aligns with Australia’s broader strategic goal to bolster its defence capabilities. As part of this initiative, Kongsberg Defence Australia has been integrated into the Australian Government’s Guided Weapons and Explosive Ordnance (GWEO) Enterprise. This collaboration is backed by a substantial investment ranging from AUD 16 to 21 billion over the next decade, as detailed in the Government’s 2024 Integrated Investment Program.

The new factory will specialize in producing KONGSBERG’s Naval Strike Missile (NSM) and Joint Strike Missile (JSM). The NSM, an anti-ship missile recognized for its operational excellence and resilience against enemy defences, has been in use by the Norwegian Navy since 2012 and has been adopted by 13 other countries, including Australia.

The JSM, an air-launched variant of the NSM, is currently being integrated with the F-35 fighter aircraft and has already been selected by Norway, Japan, and the United States Air Force, further reinforcing KONGSBERG’s reputation as a leading defence technology provider.