Australia buys foreign missiles with no offsets, no tech transfer

By Peter Roberts

We all know that Australia is scrambling to build up its missile defences, but it is somewhat galling to find the latest US$100 million purchase involves no local production whatsoever, and no technology transfer of any sort to Australians.

Well that’s not entirely true, they will teach us how to fire the things, if not anything about how they actually work.

Yes, the government has an active Guided Weapons and Explosives Ordinance policy that is preparing for some local production.

This, of course, gives local companies the opportunity to develop new skills and capabilities, and lift their ability to secure further defence work.

In January for example, the government announced Lockheed Martin Australia would manufacture an initial batch of Guided Multiple Launch Rocket System (GMLRS) missiles from 2025, as part of a $37.4 million contract.

The government said at the time: “The contract will enable an initial batch of GMLRS missiles to be manufactured in Australia, which is an important first step towards establishing domestic missile manufacturing on a larger scale.

“It will facilitate the transfer of technical data from the United States, establish processes for engineering certification, and begin to build the technical skills of an Australian workforce.”

However now we have learned from the US Defense Security Cooperation Agency that Australia has been cleared to buy 350 FGM-148F Javelin Missiles and related equipment for an estimated cost of $100 million.

DSCA said: “There are no known offset agreements proposed in connection with this potential sale.”

So despite the agency fully expecting some sort of offset obligation from Australia, there will be no local manufacturing. We probably didn’t even ask.

Further DSCA said: “Implementation of this proposed sale will not require the assignment of any U.S. Government or contractor representatives to Australia.”

Lockheed Martin in the US will be involved in the manufacture of the Javelin missiles for Australia, and is active in Australia, however it won’t have to send anyone with any knowledge of the workings of the missile to Australia.

So I am struggling to see any meaningful technology transfer.

Such is our rush to buy missiles from overseas, and such apparently is the tepidness of our efforts to extract industry and technological gains from such a large purchase, that this is another example of an off the shelf acquisition.

Picture: Lockheed Martin/FGM-148F Javelin Missile system – to be imported