Kongsberg has signed a long-term strategic partnering agreement with the Commonwealth of Australia, deepening industrial cooperation under the nation’s Guided Weapons and Explosive Ordnance Enterprise.
The agreement marks a significant step in Australia’s push to establish a sovereign long-range strike capability, with a focus on local manufacture and sustainment of advanced guided weapons.
Known as the Kongsberg Program Agreement, the deal formalises cooperation between Kongsberg Defence Australia, Kongsberg Defence & Aerospace and the Australian government. It establishes a single, coordinated framework to manage a wide range of Guided Weapons and Explosive Ordnance (GWEO) activities, streamlining collaboration across government and industry.
Kongsberg Defence Australia managing director John Fry said the agreement would strengthen Australia’s defence industrial base while supporting jobs and high-technology growth.
“Kongsberg is proud to deepen its partnership with the GWEO Enterprise, contributing to national security, job creation and high-tech industry growth,” Fry said. “This long-term agreement will facilitate and streamline activities using Kongsberg technology across all GWEO areas.”
Kongsberg Defence & Aerospace executive vice president for missile and space, Øyvind Kolset, said the partnership reinforced the company’s commitment to Australia’s sovereign defence capability.
“This agreement affirms the strong and growing partnership between Kongsberg and the Commonwealth of Australia,” Kolset said. “Together, we will help grow Australia’s defence manufacturing base and strengthen allied capability.”
As part of the arrangement, Kongsberg will manufacture and sustain its Naval Strike Missile (NSM) and Joint Strike Missile (JSM) at a new, purpose-built facility in the Astra Aerolab Business Park near Newcastle Airport, adjoining RAAF Base Williamtown. Williamtown is Australia’s largest fighter base and home to the RAAF’s F-35A Joint Strike Fighter fleet.
The NSM and JSM are fifth-generation cruise missiles capable of both maritime strike and land attack and are being acquired by the Australian Defence Force. While the Williamtown facility will prioritise ADF requirements, it will also have capacity to meet growing global demand, complementing expanded production in Norway and a planned new missile factory in the United States.
The facility is expected to create more than 500 jobs in the Hunter region and deliver around $100 million in economic benefits while opening up new opportunities for Australian suppliers to support missile production and sustainment.
Preparatory works at the site have already commenced, with construction due to be completed by mid-2026. Missile manufacturing is scheduled to begin in 2027, with production expected to ramp up to full rate by the end of 2028.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.