Under the AUD $40 million contract, BAE Systems Australia will produce additional rounds for use by the Australian, United States and Canadian navies.
Simon Forrest, BAE Systems Program Manager, confirmed that this latest follow-on order (known as Option 20) would see production extended to 2013.
Nulka is a rocket propelled active decoy system designed to lure anti-ship missiles away from their intended target.
Originally conceived in Australia, and developed under a joint Australian-US program, it provides warships with a highly effective all-weather defence against anti-ship missiles, bringing together hovering rocket, autonomous system and electronic technologies.
BAE Systems is the prime contractor responsible for design, development and integration of the Nulka system.
Two US sub-contractors, Lockheed Martin and Aerojet, manufacture the electronic warfare payload and the rocket motor respectively.
Mr Forrest confirmed that in April this year BAE Systems completed, on time and on budget, delivery of the Option 17 production rounds which had been contracted in 2007.
“This represents another very solid year of achievement by our manufacturing group based in South Australia and our principal US-based sub-contractors,” he said.
“To date, 940 Nulka rounds have been produced. Later this year we will complete production of the 1000th round, which will be a very significant program milestone.
“Its deployment on more than 130 surface combat ships is a testament to the trust that the US, Canadian and Australian navies place in the system,” Mr Forrest said.
Nulka is also Australia's largest and most successful regular defence export, with earnings of more than AUD $800 million over the past two decades.