Qld company Australian Missile Corporation chases $1b guided missile deal

A Queensland-owned business is vying for a $1 billion Defence contract to develop a new hi-tech production facility that would produce guided missiles.

A Queensland-owned business is muscling up to become the country’s first homegrown manufacturer of guided missiles, in a move that would boost jobs and ensure Australia has independent supply.

Brisbane-based NIOA, through its subsidiary the Australian Missile Corporation (AMC) and partner businesses, is vying for a $1 billion Defence contract to develop a new hi-tech weapons production facility.

The federal government’s push for Australia to establish its own sovereign guided weapon manufacturing capabilities has been amplified by the announcement of a landmark deal signed with the US and UK to help Australia build nuclear-powered submarines.

As part of the announcement Defence Minister Peter Dutton announced the government was now looking to buy a medium range “ground based air defence system” on top of establishing the manufacturing facility.

Australian Strategic Policy Institute senior analyst Dr Malcolm Davis said the AUKUS partnership and the willingness of the US to share its nuclear technology signalled Australia could soon be manufacturing guided missiles not only for itself, but for export.

“I think that’s the plan … that we aren’t necessarily designing new systems ourselves but manufacturing US or UK missile capabilities that we can then use ourselves,” he said.

Chief executive Robert Nioa said the Prime Minister’s comments about trilateral collaboration around defence technology, science and industry sent a strong signal.

“This is the strongest signal yet that our trusted allies’ respective military industries need to work more closely together to shore up our collective and individual defence capabilities in a changing global environment,” he said.

“As an island nation, precision long-range guided missiles are considered integral to our broader defence capabilities.

“The global pandemic highlighted the vulnerability of global supply chains, reinforcing the need for defence industry sovereignty to be a critical priority.”

NIOA chairman and chief executive Rob Nioa. Picture: Supplied

NIOA, through the AMC, has pitched itself to the government as a 100 per cent Australia-owned corporation meaning control of the work would never leave our borders.

The AMC has forecast the economic benefit of its proposal over a 20-year period to include more than 13,000 jobs and $173.91 billion in gross output.

Some of the work would be carried out in Queensland and some in purpose-built facilities elsewhere in Australia.