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Newcastle Herald
Newcastle Herald
Michael Parris

Missile factory puts Hunter defence industry on growth trajectory

The Navy test-fires a Kongsberg naval strike missile off the deck of HMAS Sydney near Hawaii last month. Picture by Daniel Goodman, ADF

One of the questions arising from Thursday's announcement that the federal government will help build a new strike missile factory at Williamtown is how much more of this kind of investment does the Hunter stand to receive?

Shortland MP Pat Conroy, in his capacity as defence industry minister, announced the government would partner with Norwegian firm Kongsberg Defence to start building a factory on Newcastle Airport-owned land by the end the year to produce missiles for the nation's war planes and ships.

The Hunter factory will be one of only two in the world making the Kongsberg munitions and is the nation's first large-scale missile factory.

It remains to be seen whether the Hunter factory will merely assemble foreign-made components such as engines, target seekers and warheads or become the launch pad for domestic manufacture of some or all of these parts.

The government has plenty of work ahead to develop Australian-based supply chains for the defence sector, but the war in Ukraine has exposed shortfalls in munitions supplies among the US and its allies.

It appears the factory, which is due to open in 2026 and start making missiles by 2027, will produce munitions both for the Australian Defence Force and for export.

The Hunter appears a logical place for the factory given the Kongsberg cruise missiles will be used by the RAAF's fleet of F-35 fighter jets, based at Williamtown, and will need periodic maintenance.

But the government could have chosen somewhere else, including Adelaide or perhaps Melbourne.

Williamtown is home to a growing number of defence-related businesses, forming what the government describes as the Indo-Pacific hub for the F-35 program.

Defence "primes" such as BAE Systems, Lockheed Martin and Boeing have a presence at Williamtown, and an increasing number of engineering firms around the Hunter, including Nupress, Varley and Ampcontrol, have diversified into the defence sector.

Some in the Hunter undoubtedly feel uneasy about the region becoming a place where global arms companies make missiles. The Gaza war has only amplified these concerns.

The new National Defence Strategy is designed to deny adversaries an opportunity to force Australia into a position of submission and, in many respects, is predicated on confronting worst-case scenarios.

It is up to the government to wrestle with the question of how Australian-made weapons are used overseas.

Mr Conroy is understandably enthusiastic about the estimated 100 jobs to be created at the Kongsberg plant.

Hunter business and industry groups say the factory is an important step in establishing a defence "cluster" in the Hunter which can support local businesses, attract outside firms and help the regional economy transition away from coalmining.

The missile factory will be built at Newcastle Airport's Astra Aerolab business park, co-owned by Newcastle and Port Stephens councils.

The airport has gained planning approval for two large buildings at the fledgling business estate and has lodged plans for a third.

The $200 million Kongsberg development will be a fourth project in the subdivision and likely the first to start construction.

The forecast doubling of Australia's defence budget under the NDS, the start of the AUKUS program and the perceived threat to the global rules-based order all suggest the Hunter's defence industry will only grow.

ISSUE: 40,305

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