The Government has unveiled a new Defence Industry Strategy aimed at strengthening New Zealand’s defence supply chain and growing local businesses as part of a plan to double defence spending within eight years.
Defence Minister Judith Collins and Associate Minister Chris Penk launched the strategy at an Auckland naval facility today, saying it would ensure the NZ Defence Force can adapt to a “rapidly changing world” while creating economic opportunity at home.
The strategy followed the 2025 Defence Capability Plan released in April, which committed $12 billion over the next four years.
Collins said New Zealand must build resilience in its supply chains to reduce vulnerability to global shocks.
“New Zealand is not immune from the increasing tensions felt throughout the world. We have the talent and the will. We now need to build the supports and clear the way for innovation.
“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.”
Defence Minister Judith Collins and Associate Minister Chris Penk say the strategy will future-proof the NZDF. (Source: 1News)
Penk said defence was already a major contributor to the economy with hundreds of millions of dollars invested in local companies for engineering, commercial services, and maintenance, repair, and training support.
“But there is much more we can do to help businesses grow. Practical steps include requiring large multinationals to set out plans for working with local companies on major Defence equipment and encouraging Defence and Kiwi innovators to collaborate in showcasing New Zealand-made equipment and services to our partners.”
The new strategy set out several measures over the next four years it said would deliver capability faster and strengthen local industry.
It required major suppliers to develop and submit plans outlining how they will work with New Zealand companies on defence projects, and establishes a Technology Accelerator with an indicative investment between $100-300 million to develop advanced military technologies with export potential.
Collins pointed to Tauranga-based SYOS Aerospace as an example of local innovation.
The drone manufacturer partnered with the NZDF on research and development, recently securing a £30 million (NZ$67m) deal with the UK to supply unmanned systems to Ukraine.
“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,” she said.
More than 800 local suppliers already provided engineering, maintenance and training services to the NZDF, but Penk argues there was “much more we can do” to grow the industry.
“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.”
The Defence Industry Strategy would be reviewed alongside the Defence Capability Plan every two years, with the next update due in 2027.
