Babcock and Company-X to market NZ VR defence training
Babcock International has entered a formal agreement with Hamilton-based Company-X to distribute New Zealand-developed virtual reality training systems to defence customers internationally. The arrangement was announced during the Indo Pacific International Maritime Exposition in Sydney and represents a strategic step for the Kiwi developer whose simulation software is already employed by the Royal New Zealand Navy.
Company-X is identified with a focus on immersive simulation and interactive development for defence training. Under the terms of the agreement, Babcock will support wider deployment of the systems beyond New Zealand, aiming to integrate the technology into existing training and supply networks in allied markets. The move aligns with a broader industry trend in which immersive technologies are used to enhance operational readiness and reduce training risk and cost.
Company-X’s Head of Training and Simulation, Lance Bauerfeind, framed the agreement as both a response to rising overseas demand for New Zealand innovation and an endorsement of the domestic talent base. He described the deal as recognising the depth of expertise present in New Zealand and the advantages of partnering with local organisations that can scale delivery while maintaining world-class standards. The company’s work with the Royal New Zealand Navy is cited as evidence of the technology’s operational utility.
Babcock International, which has maintained operations at Devonport Naval Base for almost three decades, participated in the signing with senior marine leadership present. The company’s long-standing presence at the base places it in a position to combine logistic and supply-chain experience with the emerging simulation capabilities offered by Company-X. Representatives from Babcock attended the event in Sydney to formalise the partnership and to discuss operational and supply considerations.
New Zealand’s Associate Minister of Defence, Chris Penk, welcomed the development, noting that commitments from international defence suppliers to reinforce New Zealand’s supply chain components are viewed positively. The minister’s remarks highlighted the value of international firms enhancing local supply linkages and the potential economic and strategic benefits this can bring to national defence infrastructure.
The agreement was presented against the backdrop of demonstrations and presentations at the Indo-Pac exposition, where the role of simulation and artificial intelligence in defence training featured prominently. At the event, Company-X explained how simulation training can tackle complex operational problems while improving safety and efficiency, particularly when augmented by AI-driven tools for scenario design and analysis. The firm argued that simulation enables realistic, repeatable training that can be tailored to specific mission needs without the logistical costs associated with full-scale exercises.
Industry observers note that the collaboration between a long-established defence supplier and a specialist local developer mirrors a growing industry pattern: traditional contractors leveraging innovative technologies from smaller firms to offer integrated solutions. For purchasers, the partnership promises access to software developed with local operational knowledge, paired with Babcock’s supply-chain reach and maintenance experience.
The agreement is expected to prompt further development work on the simulation platforms to ensure interoperability with partner forces’ training architectures and to meet certification requirements where necessary. Company-X and Babcock will likely focus on adapting the software for a range of environments and platforms so that it can be deployed across maritime, land and potentially joint training programmes.
Overall, the deal signals an increased appetite for New Zealand technology in defence markets and underscores a practical route for domestic innovators to gain international exposure through collaboration with established global suppliers.
