Australia to build guided missiles working with US

Australia announced Wednesday it would begin building its own guided missiles in close collaboration with the United States as it seeks to boost its defense capabilities.

Prime Minister Scott Morrison said it would partner with a weapons manufacturer to build the missiles in a plan that would create thousands of jobs as well as export opportunities.

He told reporters in Adelaide the country would spend 1 billion Australian dollars ($761 million) on the plan as part of a huge 10-year investment in defense and the defense industry.

Australia is part of the "Five Eyes" intelligence alliance, along with the U.S., Canada, Britain and New Zealand.

The Australian Strategic Policy Institute, an independent think tank, has estimated that Australia will spend AU$100 billion over the next 20 years on buying missiles and guided weapons.