Lockheed Martin, Raytheon to help Australia build missiles to counter China

Reuters
Reuters

Summary

  • Australia will also spend about $2.6 billion for the accelerated acquisition of sea mines and new missiles for its air force and navy

Australia picked two U.S. defense manufacturers to help build guided weapons in the country and said it would accelerate the deployment of new long-range missiles, the latest moves by the U.S. ally to revamp its military to counter China’s growing assertiveness in the region.

Australia said Raytheon Technologies Corp. and Lockheed Martin Corp. were selected to partner with a new government-backed enterprise to domestically build guided weapons for the military, which currently sources its missiles from the U.S. and other countries. Australia’s center-right government said last year that about $761 million would be invested in the effort to build guided missiles in Australia after the Covid-19 pandemic exposed weaknesses in global supply chains.

Australian Defense Minister Peter Dutton said missiles made in Australia could be exported to the U.S., creating a new supply-chain option for the U.S. military. Australian officials didn’t specify when the country’s new missile-manufacturing enterprise will start production, and defense analysts said it isn’t yet clear if Australia will produce entire missiles or just certain components.

Australia also said it would spend about $2.6 billion to more quickly acquire new air-to-surface missiles for its air force, missiles for surface vessels in its navy, and sea mines to secure the country’s ports and maritime approaches. At least some of the missiles will be operational starting in 2024. Officials didn’t specify when the missiles were previously scheduled to be deployed but Mr. Dutton said the timeline is being sped up dramatically.

Mr. Dutton said Russia’s invasion of Ukraine has been a wake-up call to the world that threats could be on the horizon. He said China’s increased military presence in the disputed South China Sea is a worrying sign and that the new missiles will help Australia deter any act of aggression from China or other countries.

“There’s a potential of conflict within our region within just a couple of years, and we should be realistic about that threat," Mr. Dutton said in a television interview Tuesday. “That’s why we’re bringing forward the acquisition of these missiles."

Australia is overhauling its military to create a larger, more powerful force focused on the Indo-Pacific just as the U.S. seeks to build a network of alliances in the region that can serve as a counterweight to China. Australia is a key partner in those efforts and is a member of the Quad group of countries, which includes Australia, the U.S., India and Japan. Australia is also part of the new three-way AUKUS military alliance between Australia, the U.K. and the U.S.

Last month, Australia said it would increase the size of its standing military by 30% and build a new submarine base on its east coast that would be able to host visiting U.S. vessels. The base will also help Australia prepare for the arrival of new nuclear-powered submarines, which it will develop in the coming decades through the AUKUS alliance. Australia also recently said it would buy howitzers from South Korea and helicopters from the U.S.

Australia faces a worsening security situation in the region as relations with China deteriorate, and Australia military planners in recent years have dropped an assumption that they would have 10 years to prepare for a possible conflict. China was angered by Australian Prime Minister Scott Morrison’s call for an international investigation into the first Covid-19 outbreak in China and retaliated by placing tariffs or other restrictions on some Australian imports.

Australia said its new air-to-surface missiles—the U.S.-made Joint Air-to-Surface Standoff Missile Extended Range—will enable its jet fighters to strike targets more than 550 miles away. Its new naval missiles, the Norwegian-designed Naval Strike Missile, will replace the aging Harpoon antiship missile and more than double the current maritime strike range of Australian frigates and destroyers, Australian officials said.

“It’s good that it’s coming sooner," said Marcus Hellyer, a senior analyst at the government-backed Australian Strategic Policy Institute and a former senior public servant in Australia’s defense department. “Guided weapons are absolutely essential to success in contemporary warfare. You only have to look at Ukraine at the moment and see the rate at which guided weapons are being used there."

Joining with U.S. defense companies to build missiles domestically in Australia makes sense because it improves Australia’s interoperability with American forces, said Sam Goldsmith, director of Red Team Research, a defense and national security research company in Australia. And any future adversary to the U.S. and Australia that wants to knock out missile production would also need to hit production lines in two countries instead of just one, he added.

“Interoperability is always a big concern," he said.

This story has been published from a wire agency feed without modifications to the text

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
more

MINT SPECIALS

Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie