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Australia has unveiled a $570m deal to produce missiles domestically, in a bid to beef up military capabilities amid a regional arms race.
Defence Industry Minister Pat Conroy who made the announcement on Thursday said the deal seek to develop naval and air-launched Joint Strike Missiles (JSM) at a plant north of Sydney.
The factory will break ground later this year, producing anti-ship cruise missiles and JSMs that can be fitted to state-of-the-art F-35A aircraft.
Conroy said, “This is about investing in our advanced, high-tech manufacturing industry and developing our sovereign defence industrial base."
A defence official told AFP the factory would begin production in 2027 and would be capable of producing 100 missiles a year.
Concerns about China’s massive defence spending and Russia’s invasion of Ukraine have led many US allies to voice concern about a shortfall in munitions manufacturing capabilities.
Australia is among several Asia-Pacific nations dramatically increasing defence spending.
Asian defence spending reached a record US$510 billion in 2023, according to the International Institute for Strategic Studies, a London-based think tank.
Australia has launched a string of ambitious defence projects, including the development of a fleet of nuclear-powered submarines.
