New Zealand launches defence industry strategy

KRI Golok , a trimaran missile craft operated by the Indonesian Navy, was designed by the New Zealand naval architect LOMOcean Marine. (Gordon Arthur)

The New Zealand Ministry of Defence (MoD) has released a strategy to strengthen its defence industrial base and support the capability development of the New Zealand Defence Force (NZDF).

The new 44-page Defence Industry Strategy – published in early October 2025 – lists three objectives: provide greater clarity about defence requirements; harness local industry and support its development; and integration with Australia.

The strategy also outlines actions to be taken over the coming four years to deliver capability to the NZDF more quickly and resiliently. As Defence Minister Judith Collins said, “We're not the biggest provider … but we can be the smartest.”

The government hopes to mature the local defence industry, which consists of about 800 companies, by presenting opportunities to partner with the NZDF or to act as subcontractors to international primes. This goal is supported by new government procurement rules that state primes must develop and submit industry capability plans to maximise local participation in procurements and sustainment.

In this vein, the Defence Industry Strategy supports implementation of the Defence Capability Plan (DCP) that was published in April and details the MoD's plan to invest NZD12 billion (USD7 billion) over the ensuing four years on NZDF capability.

Thin primes

The MoD will also explore utilising local businesses as ‘thin primes', where a local enterprise assumes total contract responsibilities to the NZDF, while subcontracting work out to larger original equipment manufacturers. The government believes this approach will engender more competition and allow domestic businesses to ascend the value chain.