BAE Systems secures $270M deal to expand missile component production

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BAE Systems Australia has been awarded a $270 million contract to enhance the production of critical components for the Evolved SeaSparrow Missile (ESSM) Block 2, a medium-range, surface-to-air missile designed to protect warships from advanced anti-ship cruise missiles.

This contract aims to increase the production capacity for the missile, which is currently in service with 12 countries and deployed on Royal Australian Navy Anzac class frigates and Hobart class air warfare destroyers, as revealed in a news release.  

BAE Systems Australia will also expand its workforce, creating 24 full-time positions, including four apprenticeships, to meet the growing demand.

Andrew Gresham, managing director of Defence Delivery at BAE Systems Australia, highlighted the strategic importance of the contract. 

“We’re proud to continue delivering as a trusted partner to Australia’s sovereign guided weapon manufacturing capability.”

He added, “Increasing the rate of production of ESSM Block 2 components will ensure Australia and its allies continue to contribute to peace and stability while remaining protected.”

The new contract builds on BAE’s long-standing involvement in the North American Treaty Organisation’s (NATO) ESSM program, in which the company has delivered over 3,000 sets of ESSM Block 1 components since 1995. Production of Block 2 components began in 2021.

In line with Australia’s sovereign defence objectives, BAE Systems is working with a network of local suppliers to support domestic guided weapon manufacturing, positioning itself as a key player in the Commonwealth’s Guided Weapons and Explosive Ordnance Enterprise.