Kongsberg’s new missile plant: A strategic leap for Australia’s defence and sovereignty

From the editor’s desk

By Rahul Chandra

The establishment of Kongsberg’s missile production plant in Newcastle, New South Wales is a significant milestone in Australia’s defence strategy and industrial capability. As the first Kongsberg plant outside of Norway, this facility is not just a testament to the growing partnership between Australia and the Norwegian defence giant but also a crucial step towards enhancing Australia’s defence sovereignty, strategic autonomy, and regional security posture.

The missile manufacturing is projected to commence by 2027. The plant will serve as a vital node in Australia’s defence infrastructure. The Australian government’s substantial investment of up to A$850 million underscores the importance of this venture, which is poised to deliver long-term benefits not only in terms of defence capabilities but also through economic stimulation and technological advancement.

The geopolitical landscape of the Indo-Pacific region has become increasingly complex and uncertain, with rising tensions and military posturing among key players. In this context, Australia’s decision to localize missile production is a strategic move aimed at bolstering its defence posture. By producing and servicing Naval Strike Missiles (NSM) and Joint Strike Missiles (JSM) domestically, Australia is taking a significant step towards reducing its reliance on foreign suppliers and enhancing its ability to respond swiftly to emerging threats.

The importance of this move cannot be overstated. In an era where supply chain disruptions are becoming more frequent, having a local facility for critical defence assets like strike missiles ensures that Australia’s defence forces are not left vulnerable due to delays or geopolitical complications. This shift towards self-reliance is a clear indication of Australia’s intent to assert greater control over its defence capabilities, a move that is likely to be welcomed by both domestic stakeholders and international allies.

Moreover, the strategic autonomy that comes with local missile production enables Australia to tailor its defence capabilities to its specific needs. The NSM and JSM are advanced, precision- guided missiles that enhance the Australian Defence Force’s (ADF) ability to conduct long-range strikes, thus significantly boosting its deterrence capabilities. In a region where military balance is constantly in flux, having the capacity to independently produce such advanced weaponry gives Australia a crucial edge. Beyond the immediate defence benefits, this venture with Kongsberg opens the door to significant technological advancement within Australia’s defence industry. By collaborating with a global leader in missile technology, Australia stands to gain invaluable knowledge and expertise. This transfer of technology and skills can stimulate innovation within the local defence sector, paving the way for future advancements and potentially positioning Australia as a leader in missile technology in the Asia-Pacific region.

The economic impact of the Kongsberg plant is another crucial aspect that merits attention. The construction and operation of the plant will create numerous jobs in Newcastle, a region that, like many others, has been seeking new avenues for economic growth. The plant is expected to generate employment not just in direct missile production roles but also in related industries, thereby providing a significant boost to the local economy. This influx of skilled jobs will also contribute to the development of a highly trained workforce, further strengthening Australia’s defence industrial base.

Furthermore, the economic benefits extend beyond mere job creation. The presence of a stateof-the-art missile production facility in Australia could attract additional investments in the defence sector, leading to the growth of a robust defence manufacturing ecosystem. This ecosystem could potentially drive innovation and competitiveness, not just within the defence industry but across other sectors as well, as technological advancements often have broader applications.

However, the establishment of the Kongsberg plant also carries broader implications for regional security. In a region characterized by strategic competition and growing militarization, Australia’s move to enhance its missile capabilities sends a clear message about its commitment to safeguarding its national interests and contributing to regional stability. By developing a robust, indigenous missile production capability, Australia is not only strengthening its own defence but also signalling its intent to play a more active role in the security dynamics of the Indo-Pacific. This development is likely to be viewed positively by Australia’s allies, particularly those who share concerns about the evolving security landscape in the region.

The ability to produce and maintain advanced strike missiles locally makes Australia a more capable and reliable partner in joint defence initiatives, such as those under the Australia-United States alliance. It also aligns with the broader trend of regional powers seeking to bolster their defence capabilities in response to the growing assertiveness of certain state actors.

But there are many challenges associated with this move.

The decision to build a missile production plant on Australian soil may draw criticism from those who advocate for a more pacifist approach to international relations. There is also the question of how this development will be perceived by neighbouring countries, some of whom may view it as a sign of increased militarization in the region.

Balancing the need for robust defence capabilities with the maintenance of peaceful and cooperative regional relations will be a key challenge for Australia moving forward.

Moreover, the successful execution of this project will require careful management and coordination between Kongsberg and Australian authorities.

The timeline for construction, commissioning, and eventual production is ambitious, and any delays could have implications for Australia’s defenceplanning. Ensuring that the plant is completed on time and that the production process meets the highest standards of quality and efficiency will be crucial to the success of this venture.

The Kongsberg plant represents a strategic shift in how Australia approaches its defence and security needs. It is a move that reflects the growing recognition that in an increasingly volatile world, reliance on external suppliers for critical defence assets can be a significant vulnerability. By taking control of its missile production capabilities, Australia is not only enhancing its defence sovereignty but also positioning itself as a key player in the regional security landscape.

As construction of the plant begins, the eyes of both domestic and international observers will be on Newcastle. The successful establishment of this facility will be a major milestone for Australia’s defence industry, signalling a new era of selfreliance and strategic autonomy. In a world where the ability to independently produce advanced defence systems is becoming increasingly important, Australia’s partnership with Kongsberg could prove to be a defining moment in its journey towards a more secure and self-sufficient future.