New sale underlines Australian industrial strategy of defence manufacturing for both domestic and international customers.
Australian Department of Defence press release
Two major export deals worth a combined $80 million have been secured by Kongsberg Defence Australia, seeing missile launchers and command and control consoles made in South Australia soon to be exported to Europe.
Last year, the Albanese Government added Kongsberg Defence Australia to its Global Supply Chain Program, which has since opened the door to Australian defence industries. These export deals are made possible through Australia’s Naval Strike Missile procurement contract, which included an agreement for components to be manufactured in Australia.
As a result, South Australian companies are now contributing to exporting sophisticated defence hardware to Poland, Spain and Denmark.
Through its parent company, Kongsberg Defence and Aerospace in Norway, the company will deliver Naval Strike Missile Coastal Defence System Command and Control Consoles to Poland.
The $30 million contract is Kongsberg Defence Australia’s first export as part of the Commonwealth’s Global Supply Chain Program. The company also secured another $50 million order for Australian-made Naval Strike Missile Launcher Systems to be exported to Spain and Denmark.
The export deals mark a significant milestone for Australia’s sovereign guided weapons manufacturing program.
Both the launcher systems and command and control consoles will be assembled by Kongsberg Defence Australia, and tested in their production and maintenance facility in Mawson Lakes, South Australia. The consoles and launchers will be manufactured using 100 per cent Australian made components and subsystems from companies based in Adelaide, Melbourne and Sydney.
The two projects are set to create 60 highly-skilled jobs at Kongsberg Defence Australia and across its local supply chain.
The Naval Strike Missile is a modern anti-ship cruise missile designed to defeat highly capable enemy warships as well as land-based targets. The Naval Strike Missile is being installed on Navy’s Hobart class destroyers and Anzac class frigates with a successful first of class firing in July 2024 and Initial Operational Capability declaration in 2024.
These exports are part of the Australian Government’s investment in the Guided Weapons and Explosive Ordnance enterprise, underpinned by a commitment in Defence’s Integrated Investment Program of $16 to $21 billion over the next decade.
Quotes attributable to Minister for Defence Industry, the Hon Pat Conroy MP:
“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.
“It will be the first time Naval Strike Missile launchers are manufactured outside of Europe and the United States, positioning Australia as a trusted source of supply to the Naval Strike Missile capability.
“These deals underscore the Government’s commitment to working alongside our industry partners to strengthen Australia’s role in the global defence industry.”
Quotes attributable to South Australian Minister for Defence & Space Industries, the Hon Stephen Mullighan MP:
“This is a fantastic result for South Australia’s defence sector, demonstrating our capabilities in delivering state-of-the-art 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.
“It’s successes like this that help cement South Australia’s reputation as the Defence State.”
Quotes attributable to Managing Director of Kongsberg Defence Australia, John Fry:
“These major export contracts are a huge milestone for Kongsberg Defence Australia.
“Together with our Australian suppliers, we have demonstrated our determination and competitiveness to be able deliver to our parent company, Kongsberg Defence & Aerospace for international customers, highlighting the capability, quality and reliability of our Australian team and supply chain.
“The export contracts under the Commonwealth’s Global Supply Chain Program are creating opportunities in the international market for our local suppliers, which is a fantastic outcome for Australian Defence industry.”
NSM launch from HMAS Sydney in August 2024. Image Australian Defence.
Naval News comments:
Kongsberg Australia’s first locally manufactured NSM launcher completed a successful Blast Test Vehicle (BTV) launch in Port Wakefield, South Australia, in December 2024.
The Royal Australian Navy in August last year also launched for the first time an NSM antiship missile from HMAS Sydney. RAN is presently in the process of replacing the ageing Harpoon AShM with NSM across the active fleet.
Notably, the Japanese government as of last year was also exploring integration of NSM on combatants produced by its shipbuilders. This event may have relevance for Australia from both an industrial and naval procurement perspective. The Japanese 06FFM, also termed “Upgraded Mogami”, is now the preferred candidate for the Australian SEA 3000-effort buying up to 11 new frigates for RAN. NSM-integration would further deepen a notional collaboration and enhance Australian workshare on the effort.