BAE Systems Ramps Up Production of Missiles Under $181.5 Million Australian Contract

By Cristina Gallardo

BAE Systems Australia is ramping up the production of critical components and assemblies for medium-range missiles, after winning a contract from the Australian government valued at 270 million.

The company, a subsidiary of London-listed arms maker BAE Systems, is one of several suppliers involved in the manufacturing of the Evolved SeaSparrow Missile (ESSM) Block 2, which Australia is buying in greater numbers to protect its warships from anti-ship cruise missiles.

The Royal Australian Navy deploys them on its Anzax-class frigates and Hobart-class destroyers. Other Western navies including those of the U.S., Canada, Germany, Norway, Spain and Portugal also use these missiles.

BAE Systems Australia will create 24 full-time jobs thanks to the contract, including four new apprentices, it said.

"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," said Andrew Gresham, managing director of defense delivery at BAE Systems Australia.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

Corrections & Amplifications

This article was corrected at 0928 GMT to clarify that BAE Systems won a contract from the Australian government valued at 270 million Australian dollars ($181.5 million) for missile components used on its Anzac-class warships. An earlier article incorrectly said the contract was in U.S. dollars and misspelled the warship class.

(END) Dow Jones Newswires

September 13, 2024 04:26 ET (08:26 GMT)

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