Contract Signed to Establish Australia's First Missile Factory

01 April 2025

Australia will manufacture Joint Strike Missile (JSM) and Naval Strike Missile (NSM) to start in 2027 (photos: Aus DoD)

Defence has signed a contract with Kongsberg Defence Australia to establish Australia’s first guided weapons production factory in Newcastle, NSW. This is the next step towards implementing the announcement made by the Australian Government on 22 August 2024.

The world-class factory, to be built at the Newcastle Airport precinct, will manufacture and service the Naval Strike Missile and Joint Strike Missile for the ADF and international partners.

Missile production at the factory is anticipated to start in 2027. Based on current schedules, the new Australian facility will be the first outside of Norway to manufacture and maintain both the Naval Strike Missile and the Joint Strike Missile.

The project reflects ongoing investment outlined in the Australian Guided Weapons and Explosive Ordnance Plan, underpinned by a commitment in the Defence Integrated Investment Program of $16 to $21 billion over the next decade.

Defence continues to deliver on the rapid establishment of domestic missile manufacturing and accelerated acquisition of long-range strike capability, advancing Australia’s national security.

Quotes attributable to Chief of Guided Weapons and Explosive Ordnance, Air Marshal Leon Phillips OAM:

“This world-class factory is an Australian-first and, based on current schedules, will be the first outside of Norway to manufacture and maintain both the Naval Strike Missile and Joint Strike Missile.

“It will supply missiles for both the ADF and international partners, enhancing regional security and contributing to stronger and more assured global supply chain for guided weapons.

“This would not be possible without Australia’s strong relationships with the Norwegian Government, Kongsberg Defence Australia and its parent company Kongsberg Defence & Aerospace.”

(Aus DoD)