The Australian government has announced a substantial investment in the construction of a new factory in Newcastle, New South Wales, dedicated to the production and servicing of Kongsberg Defence & Aerospace (KONGSBERG) strike missiles.
The facility, which will support the Australian Defence Force (ADF), marks a significant expansion of KONGSBERG’s global footprint.
The Australian government will contribute up to AUS $850 million in partnership with Kongsberg Defence Australia to establish the missile factory within the Newcastle Airport precinct, approximately 120 kilometers north of Sydney. Construction is expected to begin later this year, according to a government press release.
Eirik Lie, President of Kongsberg Defence & Aerospace, highlighted the importance of the new facility. “Strong international demand for our strike missiles means we are expanding our footprint in selected countries. The missile factory will be the first to open outside Norway, which is a testament to the strong and growing relationship between KONGSBERG, Norway, and Australia in cooperating to develop current and future defense capabilities,” Lie stated.
The decision to establish the factory comes as part of Australia’s broader strategic initiative to enhance its defense capabilities. The government has also included Kongsberg Defence Australia as a strategic partner in its Guided Weapons and Explosive Ordnance (GWEO) Enterprise. This partnership is underpinned by a significant commitment of $16 to $21 billion over the next decade, as outlined in the Government’s 2024 Integrated Investment Program.
John Fry, Managing Director of Kongsberg Defence Australia, expressed the company’s commitment to the partnership: “We are honored to have been selected as a strategic partner in the GWEO Enterprise and look forward to continuing to invest in Australia to support the armed forces, while generating jobs and economic benefits in the local area.”
The new factory will focus on the production of KONGSBERG’s Naval Strike Missile (NSM) and Joint Strike Missile (JSM). The NSM, an anti-ship missile known for its operational performance and survivability against enemy defense systems, has been a key component of the Norwegian Navy’s arsenal since 2012. It has also been selected 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. It has already been chosen by Norway, Japan, and the United States Air Force, further solidifying KONGSBERG’s position as a leading defense technology provider.