Australia unveils US$14 billion plan for local missile production

AUSTRALIA will invest US$14 billion over a decade to ramp up domestic missile and munitions manufacturing, in the latest step by the centre-left Labor government to develop a long-range strike capability in the face of a regional arms race.

Minister for Defence Industry Pat Conroy will announce the new programme on Wednesday (Oct 30) to produce weapons in Australia “at scale,” including construction of a new plant for manufacturing 155mm M795 artillery ammunition.

In a speech to the National Press Club, Conroy will say Australia stands on the “cusp of a new Indo-Pacific missile age,” according to excerpts provided by his office in advance. 

“As well as acquiring more missiles, more rapidly from our partners, we need to build a new Australian guided weapons manufacturing industry,” Conroy said. “The Guided Weapons and Explosive Ordnance Enterprise – known as GWEO – is our answer to protecting Australia in the missile age.”

The announcement is the latest step by Australia to shift the country’s military posture toward improving long-range attack and area denial capabilities.

Conroy’s speech comes just over a week after Australia announced it intended to purchase A$7 billion (S$6.08 billion) worth of US missiles, including the Standard Missile Block IIIC and Standard Missile-6. At the time, Conroy described them as the “most advanced air and missile defence weapons in the world.”

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According to the 2024 GWEO plan, which will be released on Wednesday, the new long-range strike capabilities will improve the range of the Australian navy from 200 kilometres to as much as 2,500 kilometres. BLOOMBERG