Press Conference, Mawson Lakes, South Australia

SUBJECTS: Norwegian Minister Bjorn Gram visit to Australia, New Kongsberg facility, Acquisition of joint strike missiles.

MINISTER FOR DEFENCE INDUSTRY, PAT CONROY: Well, it's a pleasure to be here at the newest Kongsberg facility joined by Minister Bjorn Gram, Minister for Defence of the Government of Norway, Air Marshal Leon Phillips, Head of Guided Weapons and Explosive Ordnance Enterprise, and the international and national heads of Kongsberg Defence. 

I first met Minister Gram at the Munich Security Conference in February 2023, and it was clear from day one that the strategic interests of Norway and Australia were aligned as middle powers with an interest in a commitment to a Rules Based Order where countries respected the rules of law and respected the rights of countries to live in peace and freedom. 

It was clear that there were lots of things that we could do together, in fact work had already begun in cooperation, but that work has accelerated under the Albanese Labor Government. 

We are proud to be here today to open this facility that will employ tens of skilled workers making a contribution to the Naval strike missile. 

The Kongsberg Defence Australia has already done brilliant work on the nation's missile defence system and now they are critical to our future in terms of guided weapons. 

Only last month I announced an $850 million contract with Kongsberg Defence Australia to manufacture Naval strike missiles and joint strike missiles at a facility at Newcastle Airport, the first facility outside of Norway to produce the most advanced strike missiles in the world, creating 500 jobs. 

Besides opening the building today, we've also announced a $140 million contract to acquire joint strike missiles to equip the Royal Australian Air Force, and I want to thank Kongsberg Defence Australia and the Norwegian Government for their support for such an important contract to equip the Royal Australian Air Force with such a critical anti‑ship cruise missile. 

Importantly, we also announced today, thanks to the support of the Norwegian Government, that we will be accelerating delivery of the joint strike missile, and delivering those missiles two years early, with the first joint strike missiles being delivered to the Royal Australian Air Force next year, as soon as next year. 

Ladies and gentlemen, that demonstrates the Albanese Labor Government's commitment to bringing forward capability, to acquiring capability to equip the men and women of the Australian Defence Force as soon as possible in response to the strategic circumstances we face. 

This is one part of our $330 million investment in new equipment and sustaining equipment for the Australian Defence Force and is one of many projects that have been brought forward that will drive better capability for the Royal Australian Air Force and the AE [indistinct] missile and generate high skilled, well‑paid secure jobs helping defend this country. 

So I want to thank the Government of Norway, the people of Norway, and Kongsberg Defence Australia for their involvement in this important initiative.

I'll invite Minister Gram to make a few comments, and then we'll be happy to answer questions, first on today's announcement, and then if there's any other questions I'll stay by myself. 

BJORN GRAM: Well, thank you so much, I'm really happy to be here on this occasion. I've really been looking forward to visit Australia and the Indo‑Pacific. We see that they have so much in common and we see that the security situation is becoming more serious, and the Indo‑Pacific and the Euro‑Atlantic areas are really more and more interlinked. We face the same threats, and we share the same values. 

That's why it's so important to develop our cooperation and we are going to be stronger together. This includes the production capacity on the armaments, on the defence material, such as this facility helps us improve. 

So I would just say congratulations to the Australian authorities, to Minister Conroy, thank you so much for the cooperation, the Kongsberg Defence and Aerospace, Kongsberg Australia, so much good news with opening of this facility, with the investments in new production facilities as well and also know this contract and the joint strike missile [indistinct] products, that is in world‑class, world leading products that will help us all be safer, and I absolutely support the Australian efforts to secure resilience and be more self supplied its critical weapons such as these missiles. 

So this is a happy day, and thank you so much. 

MINISTER CONROY: Thank you. One thing I was remiss in not mentioning, and thank you Kongsberg Defence and Aerospace for their really aggressive involvement of Australian suppliers in their global supply chains, not just for products made here in Australia but for their global products. We met vendors out there that are supplying parts of systems to Poland, to the United States, back in fact into Norway itself. 

So this is a great example of Australian industry working with a global prime to help defend multiple nations around the world. 

We'll open up to questions about today's announcement first. Yes, Kym. 

KYM BERGMANN: You'll see once again the strike master vehicle made in Bendigo by Thales NSM. Why not go ahead and order it? 

MINISTER CONROY: Well, Kym, you've been around a lot longer than me, you wouldn't expect me to comment on a live tender process right here. What I can say to you is that both Thales and Kongsberg are valued partners of the Australian Government, and I look forward to a good evaluation of all the options for Land 8113, which is one part of our very significant expansion of long range fires for the Royal Australian ‑ not the Royal Australian ‑ for the Australian Army. 

This is one part of our transformation of the Australian Army to one focused on tall manoeuvre and long strange strike, and you'll be the first to know when we've made a decision. 

KYM BERGMANN: Thank you. 

NIGEL PITTAWAY: Minister, can I ask what exactly we're getting for $140 million announced today? Is it the first tranche of missiles, or is it the study or - 

MINISTER CONROY: We are getting joint strike missiles. I won't specify the number for obvious national security reasons, but the contract signed today by Kongsberg Defence and Aerospace and Air Marshal Phillips on behalf of the Commonwealth is to apply joint strike missiles to equip the Royal Australian Air Force. 

ANDREW GREENE: I haven't been around as long as Kym or Nigel, but I do get the feeling that Kongsberg is replacing Raytheon as a preferred strategic partner for GWEO, is that the case? 

MINISTER CONROY: That's not the case, Andrew. We have announced that our newest strategic partner is Kongsberg Defence Australia. They will join Lockheed Martin Australia and Raytheon as our three strategic partners for GWEO. 

As we expand GWEO, it's natural that we align our full strategic partnerships with companies that supply significant parts of our inventory, and those three companies clearly at the moment are Lockheed Martin, Raytheon and Kongsberg, and the commitment to a missile factory is one part of that strategic partnership. 

So this is about the relationship Australia has with Kongsberg, this is about more jobs in Australia, more sovereignty, more supply chain resilience and being part of global export opportunities. So Raytheon has a role in the Defence ecosystem, as does Lockheed Martin Australia, and all three companies have got a bright future in this country. 

ANDREW GREENE: Is it also a recognition that there was perhaps too much reliance on the US, and we needed to diversify to other parts of the world? 

MINISTER CONROY: I think diversification is always important where it makes sense. What we're acquiring here is two of the premier cruise missiles in the world.  A lot of Western Navies are replacing harpoons with Naval strike missiles. As I said, the US conducted their test firing shortly after us at RIMPAC. The joint strike missile is the only anti‑ship missile that fits into the bay or the Joint Strike Fighter, so a lot of countries are looking at it including the United States and obviously Norway as well. 

So it was a no‑brainer to acquire these weapons. And I want to pay tribute to Kongsberg Defence and Aerospace and the Norwegian Government about how forward‑leaning they are in their industrial presence in this country, being co‑investing with Australia to build the only missile factory outside of Norway that can produce these missiles, and who include Australian companies in their supply chains. 

I think it's a great example that I would love the rest of the Defence Industry to emulate. Other companies are doing great work, but Kongsberg is really up there, and I think it's a really good example for other players. 

ANDREW GREENE: Will the acceleration of acquisition of JSM affect delivery, Australian delivery or Australian manufacture of NSM in any way? 

MINISTER CONROY: No, it won't. The acceleration of the joint strike missile will come from the Norwegian factory. Obviously we're building the Australian factory, it will be complete in 2026, production starts in 2027, full rate production in 2028. So this complements our domestic efforts. 

KYM BERGMANN: And why do you need a second factory at Williamstown? Couldn't this one do JSM and NSM? 

MINISTER CONROY: Well, I'll invite John to talk ‑ this actually isn't a missile factory. The Newcastle facility will be much bigger, and will focus on that, but I'll let John actually talk about what it does. 

SPEAKER: Thank you, Minister. So, yeah, this facility really is around production of I suppose more of a system. So we ‑ again, we're obviously doing sustainment of the no [indistinct] capability here, the components that Kongsberg produces. We'll be doing work around shipping store equipment production for Naval strike missile and some launch production here as well. 

But the facility in Newcastle will be a dedicated missile production facility, which has a bunch of I suppose of additional requirements in terms of plant, layout, but it essentially will be very similar to the factory that's been produced in Norway. 

MINISTER CONROY: Thank you very much everyone, thank you Minister. Thank you everyone.  Were there any questions on anything else, or everyone's happy? We'll let everybody else exit stage left, they've got other important things to do, so thank you, Minister. 

I'm not inviting ‑ if you've got nothing to ask, I'm very happy. 

ANDREW GREENE: Can we get your reaction to [indistinct] Bill Shorten on this announcement today? 

MINISTER CONROY: Oh, I'd like to pay tribute to Bill's service to this nation that began well before his election to Parliament. Few can forget the role he played in the Beaconsfield Gold Mine disaster, where he quite frankly was the person keeping Australia updated on what was happening and a key conduit to the families of the trapped miners, to then enter Parliament and play such a strong role on the design and delivery of the National Disability Insurance Scheme. I think if he did nothing else in his life, he could be rightly proud of that legacy, but he's done so much more. 

He led the Australian Labor Party after the dark days of 2013. He kept us together. He fought back gloriously against the vicious and unrestrained 2014 budget. He saw off two Coalition Prime Ministers, and I'm just so happy for him and his family that they've decided to move on to other pastures, and I think he'll make an excellent Vice‑Chancellor of the University of Canberra, and I wish him the best of luck with it. 

KYM BERGMANN: Look, I've got an endless number of AUKUS questions, but if you're happy to - 

MINISTER CONROY: I'll give you one, Kym, because I'm feeling generous. 

KYM BERGMANN: No, no, actually, I'll ‑ how about the general-purpose frigate - 

MINISTER CONROY: Yes. 

KYM BERGMANN: - you're now doing capability delivery. I'm still trying to get my head around minimum viable capability. I have asked the question before. Does it mean that Australia possibly, if we buy a frigate from Korea or Japan, that it will come with a Korean or Japanese combat system? 

MINISTER CONROY: Let me answer it this way. The general-purpose frigate is the poster child for minimum viable capability, because the change to the acquisitions system is much broader than what you're talking about, and sorry for going into some detail - 

KYM BERGMANN: No, no, no, that's great. Thank you for that. 

MINISTER CONROY: - but I'd rather give you information. 

KYM BERGMANN: Please. 

MINISTER CONROY: So as you will know, in the normal acquisition project for The Department of Defence, it will issue thousands of requirements and tenders will be required to identify how they meet each of those requirements, specify how and when, and so forth. 

We've flipped it on the head for this acquisition because the strategic circumstances demand an urgent enlargement of the Royal Australian Navy. So the Independent Surface Fleet Review identified five exemplar frigates that would meet the need for a general-purpose frigate. We've now gone out to the market to ask them to provide the best information about what they're currently producing, and what they would offer to the Royal Australian Navy. Then we as a Government will pick the one that's closest to our needs. 

So instead of inviting people to design something from scratch, meet all our requirements, we're going to pick the best ‑ the one that best fits our needs around cost, schedule and capability, and again with very minimal changes. We're working through that now. We've received information from the five companies involved, and we'll make those decisions in due course. 

Obviously we'll be cognisant that there may be potentially some requirement, changes requirement around Australian legal obligations around safety standards, but we'll see what information comes back from the companies.

But I'm really excited. If you think about the timeframe for this, announced in February, March this year, down select soon, soon, entering contract and cutting steel early 2026 with delivery by the end of the decade. That is light speed for a Defence project, and it's justified by the strategic circumstances and justified by the commitment of the Albanese Labor Government to accelerate delivery of key capabilities. 

ANDREW GREENE: Who [indistinct] in Australia flew the classic Hornets longer than anyone in the world? I'm happy to stand corrected. Have you checked [indistinct] - 

MINISTER CONROY: Well I corrected myself because I think Canada might be flying it longer ‑ thank you ‑ and that's why I corrected myself, Andrew, and I then clarified to say ‑ this is the danger when politicians go off script, what I then corrected myself to say is that we flew the classic Hornets for twice as long, if not triple the hours of the US Navy. And I was actually paying tribute to the engineers of the Royal Australian Air Force and Boeing Defence Australia and the Defence Science and Technology Group that actually did the studies to work out how to do that. I was involved in the Centre Barrel Replacement Program and through great work we saved lots of money for the Commonwealth and we extended the flying hours of those. 

So as you know in that ‑ I'm not sure whether the transcript's been released yet, I corrected myself and focused on how we were flying it longer than the US Navy. 

SPEAKER: I think we might wrap it up. 

MINISTER CONROY: Actually no, give [indistinct] Nigel and ‑ we're going to have to call it [indistinct]. 

KYM BERGMANN: I know, and mine is quick as well. Facilities, 2027, WA. Do you think that things are on track? 

MINISTER CONROY: Yes. 

NIGEL PITTAWAY: Given the announcement of a delay [indistinct] maintenance facility opening in 2026, that's a year delay from what was originally planned. Is there a reason for that? 

MINISTER CONROY: What I can say is we're moving as fast as possible. Constructions will recommence on the giant hangar; this is an essential capability for the Royal Australian Air Force and we're keen to get it done as quickly as possible. Thank you very much everybody. 

SPEAKER: Thanks everyone.

ENDS