Market Herald logo

Subscribe

Be the first with the news that moves the market
  • The Australian defence industry has awarded a $150 million contract to local defence tech specialist BAE Systems Australia for next-generation navy defence technology
  • Under the five-year contract, BAE Systems will produce and provide in-service support for a new round of Nulka decoys and launcher systems
  • The Nulka system, which was first installed in Australian navy surface ships in the late-1990s, is designed to lure incoming missiles away from ships
  • It’s also Australia’s largest and most successful regular defence exports
  • As it stands, BAE’s Nulka tech is deployed on more than 140 surface combat ships in Australian, Canadian and U.S. navies
  • According to BAE, today’s $150 million contract will help Australia strengthen its position as a world-leading defence tech exporter
  • Minister for Defence Industry Melissa Price said the new contract will maintain about 60 jobs in Victoria, 15 in South Australia and 15 in New South Wales.

The Australian defence industry has awarded a $150 million contract to local defence tech specialist BAE Systems Australia for next-generation navy defence technology.

Under the five-year contract, BAE Systems will produce and provide in-service support for a new round of Nulka decoys and launcher systems.

These are rocket-propelled active decoy systems designed to lure incoming missiles away from the ships they have targeted.

What’s more, their Australia’s largest and most successful regular defence export.

“Nulka is undoubtedly one of Australia’s most significant Defence exports,” Minister for Defence Industry Melissa Price said.

“Nulka is fitted to both Australian and United States Navy warships and forms part of the anti-ship missile capabilities that provide protection to personnel,” she said.

All up, BAE’s Nulka tech is deployed on more than 140 surface combat ships in Australian, Canadian, and U.S. navies.

BAE Systems Managing Director for Defence Delivery Andrew Gresham said today’s contract with the Federal Government will help Australia secure and strengthen its position as the “world leader in the evolution of technologies at the heart of Nulka”.

“The new contract will ensure that the next generation of Royal Australian Navy warships have the most effective anti-ship missile defence and that we continue to keep Australian and allied nations’ servicemen and women safe, both here and abroad,” Andrew said.

BAE has a large supplier network of small-to-medium Australian companies in both metropolitan and regional areas that it will use to help deliver the new systems.

Minister Price said the new contract will maintain about 60 jobs in Victoria, 15 jobs in South Australia and 15 jobs in New South Wales.

“The Nulka program provides warships with a highly effective, all-weather defence against anti-ship missiles, utilising cutting-edge hovering rocket, autonomous system and electronic technologies,” she said.

The Nulka system was first installed on Australian navy surface ships in the late 1990s and are currently fitted to a string of assault ships include the Canberra Class LHD, ANZAC Class Frigates and Hobart Destroyers.

BAE Systems is publicly listed on the London Stock Exchange, where shares currently trade for £508.29 (around A$910) each in a £16.37 billion (around A$29 billion) market cap.

More From The Market Herald

" Post-Delta jobs boom sees unemployment reach pre-GFC lows

Over 65,000 Australians found jobs in the first two weeks of December as unemployment shrank to…

" National drug regulator approves Novavax jab and first oral COVID treatments

Australia's Therapeutic Goods Administration (TGA) has this week approved the Novavax vaccine and two oral COVID…

" ABS: Payroll jobs buck December trend and fall slightly before Omicron outbreak

The latest data from the Australian Bureau of Statistics (ABS) shows a dip in payroll jobs…

" Government in visa fee refund bid to attract backpackers to support struggling workforce

The Federal Government calls on backpackers to come to Australia to support a struggling Australian workforce…