South Australia’s defence manufacturing sector has secured a major boost, with Kongsberg Defence Australia landing two export deals worth a combined $80 million.
The contracts will see missile launchers and command and control consoles manufactured in South Australia and exported to Europe, underscoring the state’s growing role in the global defence supply chain, the government reported in a news release.
The deals follow Kongsberg Defence Australia’s addition to the Albanese Government’s Global Supply Chain Program last year, which has opened opportunities for local manufacturers to contribute to international defence projects.
According to the South Australian Government, the contracts will strengthen the state’s position as a hub for advanced defence manufacturing.
“This Albanese Government’s efforts to support Australia’s sovereign defence manufacturing industry have reaped further benefits with these significant export deals,” said Defence Industry Minister Pat Conroy.
“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.”
Under the agreements, the company will deliver $30 million worth of Naval Strike Missile Coastal Defence System Command and Control Consoles to Poland and a further $50 million worth of launcher systems to Spain and Denmark.
Both will be assembled and tested at Kongsberg’s Mawson Lakes facility in Adelaide, with components sourced from suppliers across Adelaide, Melbourne, and Sydney.
“These significant contracts will not only boost the workforce at Kongsberg’s Mawson Lakes facility, but along the supply chain,” said South Australian Treasurer Stephen Mullighan. “It’s successes like this that help cement South Australia’s reputation as the Defence State.”
The projects are expected to generate around 60 highly skilled jobs in South Australia and across its supply chain.
Manufacturing will use 100 per cent Australian-made components and subsystems, further embedding local industry in the global guided weapons market.
“These major export contracts are a huge milestone for Kongsberg Defence Australia,” said John Fry, the company’s managing director.
“Together with our Australian suppliers, we have demonstrated our determination and competitiveness to deliver for international customers, highlighting the capability, quality and reliability of our Australian team and supply chain.”
The Naval Strike Missile is a modern anti-ship cruise missile designed for use against advanced warships and land-based targets. Already in service with the Royal Australian Navy, the system achieved its first successful firing in July 2024.
The exports are part of the Australian Government’s Guided Weapons and Explosive Ordnance Enterprise, backed by an investment of between $16 billion and $21 billion over the next decade.
