New Zealand Plans to Boost Defence Manufacturing, Eyes Equipment and Tech Exports

New Zealand’s Defence Industry Strategy will involve local manufacturers in the production of technology and equipment used by the country’s armed forces, the country’s defence ministers have announced.

It will require “large multinationals to set out plans for working with local companies on major defence equipment,” Associate Defence Minister Chris Penk explained, while also “encouraging Defence and Kiwi innovators to collaborate in showcasing New Zealand-made equipment and services to our partners.”

In other words, New Zealand plans to enter the defence manufacturing sector in what is, for a country of its size, a major way, selling locally-developed products to its allies and partners.

Penk said local companies already invested hundreds of millions of dollars in engineering, commercial services, and maintenance, repair, and training support for defence use.

“But there is much more we can do to help businesses grow,” he said.

New Zealand announced in May that it will increase its defence spending by $571 million (US$377 million), with some of that money going to upgraded equipment. Suppliers hoping to win contracts for some of that money will now have to develop and submit plans outlining how they will work with New Zealand companies.

Technology Accelerator

The government will also establish a Technology Accelerator, with an indicative budget of between $100 million and $300 million, to develop advanced military technologies that have export potential.

Defence Minister Judith Collins said the aim was to develop “a strong, resilient industry that delivers economic growth and grows our export markets.”

“New Zealand is not immune from the increasing tensions felt throughout the world. We must build resilience in our supply chains, so we are less affected by events outside of our control. We have the talent and the will. We now need to build the supports and clear the way for innovation,” she said.

“When the world around us is changing at such a pace, we need to change our approach to how we equip our Defence Force, and we need to work in partnership with industry to be better together. Not to do so would be irresponsible,” Collins said.

She cited drone manufacturer SYOS Aerospace, which has a research and development collaboration with the New Zealand Defence Force.

“During my recent visit to Ukraine, I saw the importance of agile, innovative, and collaborative product development to respond to the rapid pace of change on the modern battlefield, as SYOS is doing.”

The Tauranga-based firm recently secured a $67 million deal with the UK to supply unmanned systems to Ukraine.

Penk said the New Zealand defence industrial base includes more than 800 suppliers.

“Through the actions in this strategy, we look forward to seeing the industry grow, from New Zealand-designed or built products being used at home and overseas, to greater infrastructure development and more domestic contractors supporting high-value military procurement,” he said.