Kongsberg Defence Australia has secured two major export deals worth a combined $80 million, marking a significant milestone in Australia’s defence manufacturing strategy. The deals involve the export of missile launchers and command and control consoles manufactured in South Australia to Europe, specifically Poland, Spain, and Denmark.
The announcement comes as the Australian Department of Defence confirms the inclusion of Kongsberg Defence Australia in its Global Supply Chain Program. This strategic move has opened new avenues for Australian defence industries, allowing them to participate in global markets. The export deals are facilitated by Australia’s Naval Strike Missile procurement contract, which mandates the manufacturing of certain components within the country.
Boost to Local Industry and Employment
Through its parent company, Kongsberg Defence and Aerospace in Norway, Kongsberg Defence Australia will deliver Naval Strike Missile Coastal Defence System Command and Control Consoles to Poland under a $30 million contract. Additionally, a $50 million order for Australian-made Naval Strike Missile Launcher Systems will be exported to Spain and Denmark. These exports underscore Australia’s burgeoning role in the international defence industry.
Both the launcher systems and command and control consoles will be assembled and tested at Kongsberg Defence Australia’s facility in Mawson Lakes, South Australia. The projects are expected to create 60 highly-skilled jobs across the local supply chain, involving companies based in Adelaide, Melbourne, and Sydney.
Strategic Defence Advancements
The Naval Strike Missile is a modern anti-ship cruise missile designed to defeat advanced enemy warships and land-based targets. It is being integrated into the Australian Navy’s Hobart class destroyers and Anzac class frigates, with a successful first firing expected in July 2024. These developments are part of the Australian Government’s investment in the Guided Weapons and Explosive Ordnance enterprise, which is supported by a $16 to $21 billion commitment 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. This is an exciting milestone for Australia’s sovereign defence manufacturing industry and a proud moment for Australian businesses to enter the global supply chain for missile manufacturing,” said the Hon Pat Conroy MP, Minister for Defence Industry.
Impact on South Australia’s Defence Sector
South Australia’s defence sector is poised to benefit significantly from these contracts. The state’s capabilities in delivering cutting-edge technology to a global market are being recognized, further cementing its reputation as the Defence State.
“These significant contracts will not only boost the workforce at Kongsberg’s Mawson Lakes facility but along the supply chain. It’s successes like this that help cement South Australia’s reputation as the Defence State,” stated the Hon Stephen Mullighan MP, South Australian Minister for Defence & Space Industries.
Global Implications and Future Prospects
The success of Kongsberg Australia’s locally manufactured Naval Strike Missile launcher, which completed a successful Blast Test Vehicle launch in December 2024, highlights the potential for further international collaborations. The Royal Australian Navy’s recent launch of an NSM antiship missile from HMAS Sydney is part of a broader strategy to replace the ageing Harpoon AShM across its fleet.
Meanwhile, Japan’s exploration of integrating NSM on its combatants could have significant implications for Australia’s naval procurement strategies. The Japanese 06FFM, also known as the “Upgraded Mogami,” is a candidate for the Australian SEA 3000 effort, which involves acquiring up to 11 new frigates for the Royal Australian Navy. Such collaborations could enhance Australia’s industrial participation and workshare in future defence projects.
As Kongsberg Defence Australia continues to expand its global footprint, these export deals not only bolster Australia’s defence manufacturing capabilities but also position the country as a key player in the international defence market. The future looks promising for Australia’s defence industry as it strengthens its role in global supply chains and continues to innovate in defence technology.
