Archer Materials (ASX:AXE) to participate in $40b guided weapons programme

Company News

by Michael Luu

The Australian government’s $270 billion defence budget is set to bolster the country’s defence capabilities, benefitting several military-related ASX-listed enterprises such as Electro Optics System (ASX:EOS) and Archer Materials (ASX:AXE).

The Department of Defence has assigned NIOA’s subsidiary, the Australian Missile Corporation, to develop a guided missile programme for the nation, named the Sovereign Guided Weapons Enterprise (SGWE).

Semiconductor manufacturer Archer Materials (ASX:AXE) has on Monday confirmed a deal with NIOA to design and supply semiconductor technologies to the guided missile system.

The SGWE is expected to draw government investment worth an estimated $40 billion and employ up to 2000 personnel in the next two decades.

Established in 1973, NIOA is Australia’s largest private-owned supplier of small arms to the government’s law enforcement agencies and military organisations.

Another of NIOA’s other missile ventures is the collaboration with Rheinmetall Waffe Munitions to manufacture missiles for deployment from the Lockheed Martin F-35 Lightning II, which is under the US military ’s Joint Strike Fighter programme.

Shares in Archer Materials are trading 3.4 per cent higher at $0.76

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