Press Conference, Canberra

SUBJECTS: Govt investment in long-range strike missiles; Support for Ukraine; MRH-90; Academic visits to universities

MINISTER FOR DEFENCE INDUSTRY PAT CONROY: ... as traditional custodians of the land on which we’re meeting on, and recognise any other people or families with connections to lands of the ACT region. As the Minister for Defence Industry and Capability Delivery, I also pay my respects to Aboriginal and Torres Strait Islander men and women who have served our nation and continue to do so today. 

I also would like to acknowledge that I’m joined by Kongsberg Defence Australia Managing Director John Fry and Chief of Guided Weapons and Explosive Ordnance Air Marshal Leon Phillips OAM. 

Ladies and gentlemen, the Albanese Labor Government has laid the foundations for a stronger Defence Force and a safer Australia. We’ve committed a record $330 billion over the decade in capability investment for the Australian Defence Force. We’ve delivered the optimal pathway for Australia’s nuclear-powered submarines in the early 2030s as opposed to the end of the decade under the last government. We’ve laid out the blueprint for a larger, more lethal surface combatant fleet, more than doubling the size of the Navy’s surface combatant force. 

In the past few weeks we’ve announced that we’re equipping the Australian Army with its first loitering munition, its first armed drone, and announced the largest ever contract for an Australian manufacturer of small uncrewed aerial systems. And we’re speeding up delivery of defence capability acquisitions to meet the strategic challenges Australia faces. 

We’ve brought forward landing craft medium by two years. We’ve brought forward landing craft heavy by seven years, strengthening and transforming the army for littoral manoeuvre. We’ve accelerated army’s long-range strike capability with HIMARS being delivered in 2026-27 and more than doubling the number of HIMARS launches. And we will start manufacturing Guided Multiple Launch Rocket Systems in Australia from next year. 

All these decisions point to the record of the Albanese Government in acting with urgency, ensuring our men and women in uniform have what they need to keep Australia safe, and today we are continuing this record. 

Today I am announcing that an Albanese Labor Government will invest $850 million to manufacture long-range strike missiles in Australia – $850 million to manufacture long-range strike missiles in Australia. In partnership with Kongsberg Australia, we are investing in a factory in Newcastle capable of manufacturing and servicing Naval Strike Missiles and Joint Strike Missiles. 

This is the first time these missiles have been built outside of Norway. This is only the second factory in the world outside the Norwegian factory that will build Joint Strike Missiles and Naval Strike Missiles. The factory will be in the Newcastle Airport precinct and is expected to generate more than 500 jobs in the Hunter for the construction phase alone, and almost $100 million in economic benefits to the Hunter. Once operational, the factory will employ approximately 100 people in very high-skilled, high-tech work. 

Ladies and gentlemen, this investment is about keeping Australians safe in an uncertain global environment, creating local jobs and supporting a Future Made in Australia. These missiles will enhance the ADF’s ability to precisely strike targets at a longer range. The Naval Strike Missile, which our navy recently test-fired, is a modern anti-ship missile designed to defeat highly capable warships. It is one of the most advanced Naval Strike Missiles in the world. The Joint Strike Missile is the air launch version, which can be integrated into the F-35 Joint Strike Fighter without affecting the aircraft’s stealth characteristics. 

Manufacturing of these missiles represents our investment in Australia’s advanced high-tech manufacturing industry in line with the government’s Made in Australia agenda. This is about investing in advanced high-tech manufacturing industry and developing our sovereign defence industrial base in areas which have been identified as strategic priorities which, in turn, means we can accelerate capability for the Australian Defence Force. 

I’m also pleased to announce that Kongsberg Defence Australia will become a strategic partner of the Guided Weapons and Explosive Ordnance Enterprise. That partnership with Kongsberg will create more opportunities for Australian industry to contribute to this critical capability. We already know right now that Australian companies are contributing to the Naval Strike Missile and Joint Strike Missile. Take Nupress group in Cardiff, who are manufacturing components for the Naval Strike Missile right now, or BAE Systems Australia who are supplying radio frequency sensors on the Joint Strike Missile. 

Kongsberg has established strong relationships with Australian industry to support ADF requirements, which continue to directly benefit the defence industry hubs like the Hunter region. We cannot deliver the generational uplift in capability outlined in the National Defence Strategy without industrial partners as we look forward with Kongsberg Defence Australia as a GWEO strategic partner. 

So ladies and gentlemen, in conclusion, when we came to government the Guided Weapons and Explosive Ordnance Enterprise had produced two things: two media releases under Peter Dutton. Under the Albanese Labor government, we start manufacturing GMLRS missiles next year and then we start manufacturing Naval Strike Missiles and Joint Strike Missiles. So we’ve delivered two factories to produce missiles in this country, not just the one we committed to earlier this year. 

I’ll invite John to say a few words, then we’ll open it up to questions. 

JOHN FRY: Thank you, Minister. Good morning. Kongsberg Defence Australia is honoured to be announced as the strategic partner for Guided Weapons and Explosive Ordnance Enterprise for the manufacture and maintenance of both joint – Naval Strike Missile and Joint Strike Missile. Both the Naval Strike Missile and Joint Strike Missile are highly advanced fifth-generation cruise missiles capable of both maritime strike and land attack. The establishment of a Kongsberg facility in the Newcastle Airport precinct will enable the manufacture and maintenance of these long-range strike weapons and bring a new high-technology industrial capacity to Australia. 

This production initiative will create hundreds of jobs and supply chain opportunities while supporting the government’s priorities by boosting war stocks and becoming increasingly self-reliant. This capability has been enabled to support collaboration of Kongsberg Defence and Aerospace and also the Norwegian government. Thank you. 

MINISTER CONROY: Thanks, John. We’ll ask for questions first on this announcement and then I’ll ask my colleagues to exit for any other questions of the day. Andrew. 

JOURNALIST: Minister, thanks. When will the factory be finished? When will you actually start manufacturing missiles? [Indistinct] looking to manufacture? And will you actually be able to produce all the individual components here in Australia or is it just going to be simply assembling stuff that comes from overseas? How [indistinct]? 

MINISTER CONROY: So there are about five questions there Andrew, but I’ll take you through them. Construction will start before the end of this year. It will take about one and a half years to build the factory, so we expect the factory to be complete by quarter two of 2026. Then it will need to go through a certification process. So it will start making missiles in 2027 as the second missile factory in Australia. It starts production in 2027. Full-rate production will occur in 2028. And in the full production phase, it will have the capacity to produce in excess of 100 missiles a year. 

In terms of the supply chain, there are already Australian parts in these missiles. As I identified, BAE already produce the RF sensor for the JSM. Companies like Nupress in Cardiff are in the supply chain already. To be frank, most of the componentry for the first batch of missiles will be imported from overseas. But our plan is to build out the Australian supply chain to maximise the local content. And, 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. The Naval Strike Missile is replacing the 1970s UN technology of the harpoon missile, not just with our navy but around the world. And the JSM is the only missile capable of being carried in the weapons bay of the Joint Strike Fighter – the only strike missile. So there is huge export opportunities for these missiles as well. 

JOURNALIST: Minister, do we have the skill and the labour force required to do this justice? 

MINISTER CONROY: Absolutely. And that was one of the reasons Kongsberg chose the Hunter Valley, given its strong industrial base. As I said, there’s companies already there that are part of the supply chain. It’s the heart of the Australian aerospace industry with its support for the Joint Strike Fighter and Wedgetail. And I’m absolutely confident that we’ve got the workforce to do this. 

JOURNALIST: How much more per unit will it cost to build these in Australia as opposed to overseas, and how do they compare to the long-range strike missiles [indistinct]? 

MINISTER CONROY: Yes, so, I’ll invite Leon Phillips to talk about any comparisons, but in terms of cost competitiveness, the Australian option was incredibly cost-competitive for a couple of reasons. We do have a strong industrial base here, especially when we give it scale and certainty. To give you an example, we built the Anzac-class frigates cheaper and faster than Germany, where it was based from, because we committed to a buy of 10. So, the scale and certainty meant that the Australian option is incredibly cost-competitive. Secondly, there is huge global demand and constraints on the supply chain around the world. So not only is it cost-competitive to build them here, it will actually deliver the missiles faster than if we were relying on a production line overseas. So I’m really proud of the Australian industry opportunities there. 

Leon, did you want to talk about any comparisons? 

LEON PHILLIPS: So, we’ve already done some work to compare what the cost of production would be with Australian components. So, for instance, on the Naval Strike Missile, particularly in the modular launch system, we’ve already got Australian components coming into that system and they are comparable to the price we would pay if we were sourcing those components from the extant supply chain. We do have money set aside to progressively qualify Australian industry. We’ve got a very competitive and highly capable Australian industry that can produce components for missiles. We're already producing a range of components for the F-35 to high standards. So, there are many of the companies we would see to come with us in the supply chain for this missile. 

I think the other important thing to comment on and the Minister touched on is just the surety of supply that comes with not only the ability to be able to produce these missiles in Australia but also there’s a requirement to refurbish and repair and upgrade over the life of the system. We have had previous experience where it may be a couple of years in order to get into repair pipelines for other missiles. Having a factory and the local knowledge and the ability to recertify these missiles will allow us to turn those around quickly and also allow us to prioritise what goes through those factories. 

MINISTER CONROY: Thanks, Leon. And so, just to summarise there, given the fact that Australian industry was competitive on cost, given it would deliver the missiles faster and given that it gave us greater self-reliance and sovereignty, investing $850 million was a no-brainer that makes Australians safer and creates jobs in Australia. 

JOURNALIST: Minister, what are these missiles worth, is it about $60 million? What are they designed to take out? Can they take out a frigate, a bigger ship, an entire building? What are they designed to do? 

MINISTER CONROY: Andrew, the main – these are anti-ship missiles. These are designed to identify and destroy ships of any potential adversary. That is their role. And they are some of the most advanced anti-ship missiles in the world, and I’m really proud that we’re equipping the navy with the Naval Strike Missile to do that job. 

JOURNALIST: What’s the cost per unit? 

MINISTER CONROY: Leon? 

LEON PHILLIPS: So, the cost, given the order of about sort of $4 million per JSM, slightly less for the Naval Strike Missile. 

JOURNALIST: And could this take out a submarine? 

LEON PHILLIPS: So, these are anti-surface missiles. So obviously they wouldn’t [indistinct] submarines below the water. So they’re really designed to take out target surface ships. They also have a land attack feature as well. So, again, they have a multi-purpose and a [indistinct]. 

JOURNALIST: Could they take out a building? 

LEON PHILLIPS: They could take out a building, they are capable of doing that [indistinct]. 

MINISTER CONROY: Matthew. 

JOURNALIST: Where could you see us exporting these to, and how much of a focus is exporting first and then building up a stockpile for Australia in case we really need them? 

MINISTER CONROY: Well, the initial focus is building the stockpile for Australia, but it’s fair to say a lot of the Western world is introducing these into service. The Naval Strike Missile, for example, is being procured by the US government, particularly the US Marine Corps and equipping land-based trucks to use them in an anti-ship capability. They’re also being put on the US Navy ships. In fact, John was telling me that the US Navy test-fired their Naval Strike Missiles from one of their destroyers a week after we test-fired ours off our destroyer. So, they’re really important, and the Joint Strike Missile is being investigated by a lot of countries that run the JSF, because obviously the stealth characteristics of the Joint Strike Fighter are maximised when you carry the weapons in the weapons bay, and this is the only anti-ship missile that fits into the weapons bay. 

So we’ve deliberately – we are deliberately building a factory whose capacity is greater than what we need today. That is obviously to guard against future scenarios for Australia and, secondly, to capitalise on export opportunities as part of our Future Made in Australia agenda. And that statement piece that Leon talked about is really important – we will have the capacity not just to sustain and refurbish our missiles; we can potentially do that for United States forces who might be positioned in the Indo-Pacific. We haven’t reached agreement on that, but just as we’ve done deep-level maintenance on US Navy Helicopters, just as we’ve swapped out torpedos for US Navy submarines, there will be opportunities like that in the future. 

JOURNALIST: So what’s the structure of the money that’s being invested in this? Is the factory going to be like [indistinct] where it’s owned by the commonwealth and operated by Kongsberg? What’s the structure there? 

MINISTER CONROY: I might invite John to talk about that. 

JOHN FRY: Yes, so the structure for this is largely – it will essentially be, I suppose, a commercially operated and owned facility, so owned by Kongsberg. But obviously considering, you know, funding support from the federal government around providing that as priority and surety of a supply for [indistinct], the priority focus of the capacity of this particular facility. 

JOURNALIST: So this facility will be only the second one outside of Norway. You must have a high level of trust in Australia. 

JOHN FRY: Correct. I think it’s fair to say that not too many countries would have this opportunity. I think from a Norwegian perspective Australia obviously is a trusted nation, a trusted partner. They’re also, you know, very close with the US as their primary strategic partner, like Australia has. So, yes, we definitely are quite special and quite fortunate to have this opportunity. 

MINISTER CONROY: Thanks, John. So just to repeat: this will be the first factory outside of Norway, the second in the world, but the first outside of Norway to produce these missiles, demonstrating the advanced manufacturing in this country. 

In terms of the – you asked about the broader budget, the $850 million covers building the factory, running the factory for the first seven years of its life and a significant portion goes to uplifting the Australian supply chain to qualify them and get them into making the subcomponentry for the missiles. 

Any other questions on today’s announcement? [Indistinct] and we’ll make this the last one. 

JOURNALIST: [Indistinct] the Australians [indistinct] or will that be a separate [indistinct]? 

MINISTER CONROY: It covers part of that. We’ll be covering seven years of running the factory, but there’ll be some elements that will be on top of that to actually acquire the war stock. 

JOURNALIST: Another missile question, [indistinct] in 2018 the Rafael was selected as the ADF’s anti-tank guided missile [indistinct]. A couple of days ago we spent another $100 million buying more Javelins, so I’d like to know what they are. 

MINISTER CONROY: Well, the Spike missile is being used to equip Land 400 Phase 2, the Boxer combat reconnaissance vehicles, that work is progressing and Rafael has informed me that work is going very well there. There’s Australian suppliers really involved, like Varley Group up in Tomago in the Hunter Valley. So that plan continues right now. 

And I might ask my colleagues to exit – did you want to add to that? Okay, thanks very much. Are there any other questions of the day? 

JOURNALIST: Minister, can I take you to the MRH-90 inquiry, which in the past fortnight has heard evidence from Lieutenant Colonel Brendan Reinhardt. He said that when the [indistinct] Aviation Test and Evaluation Section [indistinct] their concerns about the TopOwl system to defence they were told by [indistinct] that they would be [indistinct] ahead as it had already been paid for. What’s your response to that? 

MINISTER CONROY: Andrew, the tragic loss of four service personnel in the MRH‑90 crash is [indistinct] sad. We owe it to those four soldiers and their families to allow the investigations to go on without public commentary from members of the government. So I won’t be commenting on it until we see the responses from that inquiry. We owe that to the families, Andrew, and I won’t be commenting. 

JOURNALIST: [Indistinct] families. If that’s the [indistinct]. 

MINISTER CONROY: Well, I’m not going to get into claims around the MRH-90 crash [Indistinct].

JOURNALIST: [Indistinct]. 

MINISTER CONROY: I’m not going to comment on ongoing inquiries. That would not be appropriate. 

JOURNALIST: Are we going to be sending any more Bushmasters to Ukraine after [indistinct] been destroyed in the recent [indistinct]? 

MINISTER CONROY: We’re provided to be a partner of Ukraine in their valiant resistance to the illegal invasion of their country by Vladimir Putin. We’re proud to have provided $1.1 billion of military assistance. We continue to talk to the Ukrainian government about how we can support their efforts, and those discussions will continue. 

JOURNALIST: Are you concerned about them being used in Russian soil? This is not about the Ukrainian territory [indistinct]; like, they’re now crossing the border into Russia? 

MINISTER CONROY: I’m not going to comment on tactical deployment in the battlefield. We’re proud to support Ukraine’s effort and proud to have provided $1.1 billion of military assistance. 

JOURNALIST: So carte blanche? They can use it -- 

MINISTER CONROY: I'm not going to comment on tactical deployments in Ukraine. 

JOURNALIST: Minister, should ADFA sever ties with China, just as UNSW indicated it would do? 

MINISTER CONROY: All Australian universities have obligations around their cooperation with foreign universities and we would encourage them to continue to monitor and make decisions along the guidelines that we’ve provided. 

SPEAKER: Last question. 

JOURNALIST: You sit on NSC. What is it a mistake bringing people from Gaza in on advisor visas? 

MINISTER CONROY: Firstly, I don’t comment on matters that are discussed in NSC as a principle. In regards to your current – your actual question, the same security standards have been applied to the people from Gaza that have been applied to every other person coming to this country. The same security standards conducted by the same security agencies, conducted, in fact, by the same security personnel. We trust them utterly. They’re doing a wonderful job. 

For Peter Dutton to undermine confidence in our security agencies just shows how weak he is on national security. He was an embarrassment as a defence minister. As I said, he produced two media releases on guided weapons, we’re building two factories on guided weapons. He continues to criticise national security because he is all bluff and bluster. He is all about Top Gun music and red carpets and not about delivering for the nation. 

Thank you very much, everyone.

ENDS