A major milestone for AUKUS and Australian industry has been reached, with an Australian business set to supply parts directly into the US Navy’s Virginia-class nuclear-powered submarine program after completing the Australian Submarine Supplier Qualification Program (AUSSQ).
Worth a total of AUD$800,000, the purchase orders were placed with West Australian company VEEM for the supply of cast parts in the nuclear-powered submarine supply chain for HII at Newport News Shipbuilding in Virginia. HII is the US’s largest military shipbuilder and one of two companies responsible for the build and sustainment of the US Navy’s Virginia-class nuclear-powered submarines.
The contract was awarded as a result of the efforts of the AUSSQ pilot program, managed by H&B Defence on behalf of HII Australia and the Australian Submarine Agency.
The program creates a direct pathway for Australian businesses to supply into the US and UK supply chains, which have previously been closed to foreign companies.
To date, AUSSQ has qualified 20 Australian businesses as capable suppliers to support the nuclear-shipbuilding industry. The process involves a thorough examination of business capability to meet licensing standards, with each one of the businesses working closely with nuclear experts from HII and Babcock International.
The orders mark the beginning of what will be the long-term growth of Australia’s industrial base to support the nuclear-powered submarine enterprise.
H&B Defence Managing Director Tim Brown AM said:
“VEEM has demonstrated the strength of Australia’s manufacturing industry and led the way for other businesses across Australia to qualify and compete to supply into the US and UK submarine industrial bases. In turn, this will ultimately position industry to supply Australia’s own nuclear-powered submarine program as the nation prepares to construct and sustain submarines in-country.
“These purchase orders shows that the AUSSQ program is having a real and tangible impact. Building and sustaining nuclear-powered submarines is a technically challenging and highly complex undertaking. Exacting standards must be met and Australian industry is up for the challenge.
“AUSSQ is proof that the nation has the talent and capability to be able to support nuclear powered submarines. We can have confidence that this is the first of many orders, which herald the re-industrialisation required for AUKUS.”
VEEM Chairman Brad Miocevich said:
“Securing these orders from HII to support the US Navy’s Virginia-class submarine program is a significant milestone for VEEM and demonstrates the role Australian manufacturers can play in this highly specialised defence supply chain.
“I see this as an important step towards our longer-term ambition of supplying AUKUS submarines built here in Australia. We look forward to pursuing that opportunity as Australia’s nuclear-powered submarine industry develops.”