Babcock International has joined forces with Hamilton-based Company-X to expand the global reach of immersive virtual reality training systems for military organizations. The partnership, unveiled at the Indo Pacific International Maritime Exposition in Sydney, represents a major boost for New Zealand’s defense technology landscape. Company-X’s VR platforms, already integrated into Royal New Zealand Navy training programs, will now benefit from Babcock’s international footprint and operational expertise, enabling wider adoption across allied defense forces.
This collaboration aligns closely with New Zealand’s newly updated defense procurement rules. The revised policy requires foreign defense contractors to demonstrate clear strategies for involving local companies in the development, delivery, and through-life support of defense capabilities. Additionally, the New Zealand Defence Force is encouraged to consider smaller national firms as viable suppliers, ensuring that domestic innovators have opportunities to contribute to major defense modernization projects.
New Zealand’s commitment to strengthening its defense industrial base is further supported by a technology development fund valued at up to 300 million NZD ($174 million). The initiative is designed to accelerate research, innovation, and commercialization of next-generation military technologies. This investment complements major procurement decisions made earlier in the year, such as the $1.16-billion purchase of five Sikorsky MH-60R Seahawk helicopters to enhance maritime security, anti-submarine warfare operations, and long-range surveillance capabilities. This acquisition will be further supported by the planned addition of two Airbus A321XLR aircraft.
In parallel, the Royal New Zealand Air Force finalized a comprehensive upgrade of its NH90 fleet in June, introducing upgraded avionics, mission software, and enhanced operational performance. Collectively, these modernization programs, policy reforms, and industry partnerships highlight Wellington’s determination to build a technologically advanced, future-ready defense ecosystem. The Babcock–Company-X partnership is expected to play an influential role in this evolving landscape.
