Government signs contract for first Australian missile factory
INDUSTRY
28 March 2025
By: Stephen Kuper
Defence has signed a landmark contract with Kongsberg Defence Australia to establish Australia’s first guided weapons production facility in Newcastle, NSW.
This initiative marks a significant step forward in implementing the Australian government’s commitment to strengthening sovereign missile manufacturing, as announced on 22 August 2024.
Chief of Guided Weapons and Explosive Ordnance, Air Marshal Leon Phillips OAM, highlighted the significance of the new facility, stating, “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.”
The advanced facility, to be constructed within the Newcastle Airport precinct, will be responsible for manufacturing and servicing the Naval Strike Missile and Joint Strike Missile for the Australian Defence Force and international partners. The project is a result of Australia’s strong defence ties with the Norwegian government, Kongsberg Defence Australia, and its parent company, Kongsberg Defence & Aerospace.
Missile production at the factory is expected to commence in 2027. Once operational, the Newcastle facility will be the first outside of Norway to both manufacture and maintain these cutting-edge missile systems, enhancing Australia’s sovereign capability in long-range strike weaponry.
This investment aligns with the Australian Guided Weapons and Explosive Ordnance Plan, which is underpinned by a commitment of $16 to $21 billion over the next decade through the Defence Integrated Investment Program. The plan supports the rapid establishment of domestic missile manufacturing and the accelerated acquisition of advanced strike capabilities.
Defence remains focused on strengthening Australia’s national security by fast-tracking domestic missile production, reinforcing supply chain resilience and ensuring the ADF is equipped with next-generation guided weapons technology.



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