By Kirsty Needham
AVALON, Australia (Reuters) โ The Ukraine war and increased European defence spending are likely to slow Australiaโs plans to develop its own missile componentsโ capability as it pushes ahead with a multibillion-dollar effort to acquire long-range strike missiles.
Prime Minister Anthony Albanese pledged A$74 billion ($46.68 billion) last year for missile acquisition including A$21 billion to establish a Guided Weapons and Explosive Ordnance Enterprise in Australia, as his Labor government reshaped the countryโs defence strategy to respond to Chinaโs military build-up.
Hedging against global supply issues, Australia signed a flurry of orders with U.S. and European defence companies, including Lockheed Martin, Kongsberg and Raytheon.
Lockheed Martin vice president for missile and flight control Tim Cahill said that the U.S. company was in discussions with Australia on โlong term and short term solutionsโ for hypersonic missiles, which Australia wants to defend its northern borders.
โLong range strike and hypersonics โ long range fast strike and very survivable strike โ is clearly a priority,โ Cahill said in an interview at this weekโs Avalon Air Show.
Gathered at the event in the southern state of Victoria, defence executives said global missile component shortages and high demand, and the need to improve the capacity of Australian suppliers, meant Australian components would only gradually be built into local production.
Norwayโs Kongsberg plans to have a common supply chain between Europe, the United States and the Indo Pacific when new factories in Australia and the United States open, with the workload distributed across the facilities, said its Executive Vice President of Missiles & Space Oyvind Kolset.
โOf course the demand is extremely high now, itโs a challenge to ramp up at the rate we are doing now, but at least we have worked on this for a number of years,โ Kolset said, referring to missile production for the Ukraine war.
The company has also contracted 10 Australian suppliers for possible work on later installations of its Naval Strike Missile on the deck of Australian frigates, said Kongsberg Australia general manager John Fry.
Some parts of the missile supply chain require more industrial capacity than Australian currently has, he said.
โMaking the missile from scratch with todayโs capability wouldnโt be possible. We canโt do that in Norway either, we rely on suppliers in the U.S. and Europe,โ said Kolset.
Lockheed Martin, meanwhile, expects to produce Guided Multiple Launch Rocket Systems (GMLRS) in Australia this year.
The supply of solid rocket motors needed for GMLRS in the United States was โnot sufficientโ, Cahill said in an example of global shortages.
Cahill said Australiaโs Guided Weapons and Explosive Ordnance Enterprise was strategically important and would bring high capacity production outside the United States for the first time.
Although 60 local companies had been identified as potential suppliers, Australian content would be slowly be brought in, he said.
Lockheed Martin has delivered the first two of 42 High Mobility Artillery Rocket Systems (HIMARS) launcher vehicles ordered by Australia, even with the demand in Ukraine.
Australia has said army regiments with HIMARS can be transported by C-17 aircraft to neighbouring island states, which have defence agreements with Australia, in any regional conflict.
Australia will select a second order of land-based missile systems by the end of the year, with HIMARS and Kongsbergโs Naval Strike Missile mounted on an Australian-made Bushmaster truck shortlisted.
Kongsbergโs Kolset said the United States Marines Corp was already deploying its system in the region. โFor the Marines, this is their highest priority programme,โ he said.
($1 = 1.5853 Australian dollars)
(Reporting by Kirsty Needham in Avalon; Editing by Kate Mayberry)
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