Kongsberg Defence Australia has been named the newest strategic partner of the Guided Weapons and Explosive Ordnance (GWEO) Enterprise. It is the only non-American company to be a partner on GWEO. Through the partnership, the company, in concert with Defence, will build a new missile factory near Newcastle Airport that will produce both Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM).
Defence will invest up to $850 million into the overall project. The funding includes money to help build the factory, to operate it for seven years and to qualify Australian industry as suppliers for both missiles. Construction is expected to begin later this year. When complete in 2026, It will be the only factory outside of Kongsberg, Norway, that can make both kinds of missiles. The factory will be owned and operated by Kongsberg Defence Australia and will begin to produce missiles from 2027 after completing a certification process.
"There is huge global demand and constraints on the supply chain around the world. So not only is it cost competitive to build here, it will actually deliver the missiles faster than if we were relying on the production line overseas," said the Minister for Defence Industry and Capability Delivery, Pat Conroy.
Full rate production at the factory is scheduled to begin in 2028. At that point, it will have capacity to build up to 100 missiles per year, most of which will be used to fill Australian war stocks. In the longer term, ADM understands, missile throughput could be increased to support exports. Initial batches will primarily be assembled from imported components, with the amount of Australian content per missile increasing gradually as suppliers are certified and brought onboard.
"In fact, a significant chunk of the $850 million announcement is for Kongsberg to develop and uplift the Australian industry to fill out that supply chain. We've got huge opportunities not just to support the ADF, but to export these around the world," Conroy added.
NSM is already in service with the Royal Australian Navy (RAN) onboard some Anzac class frigates and HMAS Sydney, which test-fired the missile in July 2024. It will continue to roll out across the rest of the fleet over the next few months. The Royal Australian Air Force (RAAF) is currently examining the possibility of outfitting its F-35As with JSM, however, given Defence is now investing in bringing production of JSM onshore, it is likely that it has now been formally selected for integration.