The Albanese Government will contribute up to $850 million in 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. 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 (ADF). It will be one of only two facilities in the world capable of producing NSM and JSM with the other site in Kongsberg, Norway.
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.
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.
It delivers on 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 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. HMAS Sydney test-fired a NSM in July 2024.
The establishment of the 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.
Quotes attributable to Minister for Defence Industry and Capability Delivery, the Hon Pat Conroy MP:
"Today's announcement is another example of the Albanese Government's commitment to keeping Australians safe while also supporting a future made in Australia.
"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.
"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."
