Babcock International has formed a global partnership with New Zealand technology firm Company-X to deliver advanced virtual reality (VR) training systems for defense customers worldwide. Announced during the Indo Pacific International Maritime Exposition in Sydney, the collaboration marks a major milestone for New Zealand’s growing defense tech sector and highlights Company-X’s strategy to strengthen the resilience and diversity of its supply chain. The Royal New Zealand Navy already employs Company-X’s VR simulation tools to enhance training, operational planning, and mission readiness through immersive digital environments.
The agreement comes as New Zealand transitions to a revised defense procurement model designed to increase local industry participation. Under the updated framework, international contractors are now required to demonstrate how they will integrate domestic companies into the delivery, sustainment, and long-term support of major defense programs. The policy shift also urges the New Zealand Defence Force to consider smaller homegrown firms as credible suppliers, working alongside established global manufacturers.
Additionally, the New Zealand government is preparing to launch a defense innovation fund worth up to 300 million NZD ($174 million) to support the development of next-generation military technologies. This move follows several high-value acquisition decisions this year aimed at strengthening the nation’s air and maritime capabilities. In August, New Zealand committed $1.16 billion to procure five Sikorsky MH-60R Seahawk helicopters, enhancing its maritime patrol and anti-submarine warfare capacity, along with two Airbus A321XLR aircraft for extended-range transport.
Earlier, in June, the Royal New Zealand Air Force completed a comprehensive upgrade of its NH90 helicopter fleet, integrating new software, mission systems, and equipment to boost performance and reliability. Together, these investments illustrate Wellington’s broader commitment to modernizing its defense forces while fostering domestic industrial growth—an environment in which the Babcock–Company-X partnership is well positioned to thrive.
