Electro Optic Systems forms Sovereign Missile Alliance

Electro Optic Systems and Nova Systems have announced the formation of the Sovereign Missile Alliance (SMA), a 100% Australian-controlled joint venture with EOS and Nova as equal partners.

The Australian Government has announced that it expects to outlay $1 billion from mid-2022 to establish a Guided Weapons and Explosive Ordnance Enterprise (Enterprise), to manage the Commonwealth’s portfolio of GWEO. The Enterprise will comprise the Commonwealth Department of Defence and one or more Sovereign Industry Partners (SIPs) to be selected under a competitive process.

The Commonwealth has forecast GWEO requirements exceeding $40 billion over the period to 2040, and industry and analyst estimates range to $100 billion. The selected SIPs will be responsible for some or all of the following aspects of GWEO management: manufacturing, research and development, education and training, test and evaluation, maintenance and repair, storage and distribution, and disposal.

EOS and Nova intend for the SMA to compete for selection by Defence as a SIP considering its unique set of attributes that align with requirements for a SIP in the Enterprise:

  • Sovereign. It is Australian owned and controlled. It is demonstrably “sovereign” using any definition applicable.

  • Critical Mass. It has the scale to move forward quickly to meet Enterprise objectives. Nova Systems and EOS jointly have over 1,000 skilled staff, 18 facilities across Australia, and over $0.5 billion in revenue.

  • Supply Chain. The SMA already has an extensive Australian supply chain network of more than 600 SMEs, with many qualified to defence aerospace standards.

  • Experience. SMA partners have jointly over 55 years of experience in the defence aerospace industry.

  • Capabilities. The SMA has design, development, systems integration, test and evaluation, certification and systems assurance for military aerospace products.

  • Technology. Through EOS, the SMA can access the largest Australian-owned portfolio of aerospace technologies, and join the largest national tertiary collaboration programs in the Australian defence industry. This technology is applicable to improving missile maintenance and to the development of next-generation missiles.

The SMA will leverage the two partner companies for the resources to move rapidly through an establishment phase to quickly deliver improvements to the operational readiness and cost-effective growth of Australian missile stocks and other GWEO inventory.

“The sovereign capability to deliver guided weapons already exists in-country and the SMA creates an Australian owned entity of scale with the required capabilities, resources, funding and established relationships across the broader Defence ecosystem to start this journey with the Commonwealth now.” said Jim McDowell, Group CEO, Nova Systems.