Two major export deals worth a combined $80 million have been secured by Kongsberg Defence Australia, marking a significant milestone in Australia’s defence manufacturing strategy. The deals will see missile launchers and command and control consoles, made in South Australia, exported to Europe, underscoring Australia’s growing role in the global defence industry.
The announcement comes as the Australian Department of Defence confirmed the contracts, which are part of the Naval Strike Missile (NSM) procurement agreement. This initiative includes the production of components within Australia, facilitating the export of sophisticated defence hardware to Poland, Spain, and Denmark.
Global Supply Chain Program: A Gateway for Australian Defence
Last year, the Albanese Government integrated Kongsberg Defence Australia into its Global Supply Chain Program, a move that has opened doors for Australian defence industries on the international stage. The $30 million contract with Poland is Kongsberg Defence Australia’s first export under this program, with an additional $50 million order for missile launchers destined for Spain and Denmark.
These contracts are not just a commercial success but also a testament to the capabilities of South Australian companies, which are now integral to the production and export of defence technology. The components will be assembled and tested at Kongsberg’s facility in Mawson Lakes, South Australia, using entirely Australian-made parts sourced from Adelaide, Melbourne, and Sydney.
Economic and Strategic Implications
The deals are expected to create 60 highly-skilled jobs within Kongsberg Defence Australia and its local supply chain. This development represents a significant boost to Australia’s sovereign guided weapons manufacturing program, aligning with the government’s broader investment in the Guided Weapons and Explosive Ordnance enterprise, valued at $16 to $21 billion over the next decade.
“The Albanese Government’s efforts to support Australia’s sovereign defence manufacturing industry have reaped further benefits with these significant export deals,” said Minister for Defence Industry, the Hon Pat Conroy MP.
Minister Conroy emphasized the importance of these deals in positioning Australia as a trusted supplier of Naval Strike Missile capabilities, marking the first time such launchers are manufactured outside Europe and the United States.
South Australia’s Role in Defence Manufacturing
South Australia, often referred to as the “Defence State,” plays a pivotal role in these developments. According to South Australian Minister for Defence & Space Industries, the Hon Stephen Mullighan MP, the contracts are a testament to the state’s capabilities in delivering cutting-edge technology to a global market.
“These significant contracts will not only boost the workforce at Kongsberg’s Mawson Lakes facility but along the supply chain,” Minister Mullighan stated.
The contracts highlight South Australia’s growing reputation in the defence sector, further cementing its status as a hub for advanced manufacturing and technology.
Looking Ahead: The Future of Naval Strike Missiles
The Naval Strike Missile, a modern anti-ship cruise missile, is being integrated into the Royal Australian Navy’s fleet, including the Hobart class destroyers and Anzac class frigates. A successful first firing is anticipated in July 2024, with full operational capability expected later that year.
This development follows a successful Blast Test Vehicle (BTV) launch in Port Wakefield, South Australia, in December 2024, showcasing the capabilities of the locally manufactured NSM launcher.
Moreover, the Japanese government is exploring the integration of NSM on its naval combatants, which could have significant implications for Australia’s industrial and naval procurement strategies. The potential collaboration could enhance Australian workshare in the SEA 3000 effort, which aims to procure up to 11 new frigates for the Royal Australian Navy.
As Australia continues to expand its role in the global defence industry, these export deals with Kongsberg Defence Australia represent not only a commercial success but also a strategic advancement in the nation’s defence capabilities and international partnerships.
