Babcock International has partnered with New Zealand-based Company-X to expand the global delivery of virtual reality training solutions for military customers. Announced at the Indo Pacific International Maritime Exposition in Sydney, the partnership represents a significant step forward for New Zealand’s defense technology industry. It also aligns with Company-X’s long-term objective of strengthening its supply chain and scaling its immersive training platforms, which are already in use with the Royal New Zealand Navy to improve operational readiness.
The collaboration closely follows New Zealand’s overhaul of its defense procurement rules. Under the new guidelines, foreign defense contractors must outline clear plans to involve local companies in the development and through-life support of defense capabilities. The updated strategy also encourages the New Zealand Defence Force to evaluate smaller domestic firms as potential suppliers, enabling them to contribute alongside major international manufacturers.
Wellington is also advancing new initiatives to boost defense innovation. A technology development fund valued at up to 300 million NZD ($174 million) is set to support emerging military technologies and accelerate local industry growth. This push accompanies major procurement decisions made earlier in the year, including the acquisition of five Sikorsky MH-60R Seahawk helicopters. The $1.16-billion investment will enhance New Zealand’s maritime security, anti-submarine warfare capabilities, and airborne surveillance operations, complemented by the addition of two Airbus A321XLR aircraft.
In June, the Royal New Zealand Air Force completed a full upgrade of its NH90 helicopter fleet, integrating new avionics, mission software, and performance enhancements. These modernization efforts, combined with the new procurement framework and innovation funding, underscore New Zealand’s commitment to building a resilient, technologically advanced defense ecosystem—one in which the Babcock and Company-X partnership is expected to play a central role.
