Five SA businesses win help from US shipbuilder in race to win global subs work
Five South Australian companies are getting race-ready for lucrative work building nuclear-powered submarines under an agreement with the United States’ largest shipbuilder.
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Five South Australian companies are in the race for lucrative work building nuclear-powered submarines under a new program with the United States’ largest shipbuilder.
Premier Peter Malinauskas today announced the companies have been picked for a $1m Supplier Capability Uplift Program to receive expert advice from Huntington Ingalls Industries (HII), one of only two designers and builders of the submarines for the United States Navy.
HII every year spends about $1b USD with more than 2,000 suppliers in the United States.
Its Australian entity HII Nuclear Australia would assess the local businesses to help spot capability gaps in competing for work on the Virginia Class Submarine and other US defence opportunities.
The five successful companies are McKechnie Iron Foundry, Century Engineering, Levett Engineering, H-E Parts International and MacTaggart Scott Australia.
The announcement was made at McKechnie Iron Foundry in Gepps Cross, a company that has been operating for 60 years that works in the mining, resources, automotive and engineering industries.
“As a South Australian owned company, this is a great opportunity for us and I’m confident in the skills and knowledge of my team to become part of the global supply chain for submarine builds,” foundry chief executive officer Andrew Nixon said.
Mr Malinauskas said once the businesses receive detailed reviews and reports in the program they can apply for a matched funding grant to tweak operations and up their chances in winning work through the global supply chain.
“If our companies are to compete for work on the Virginia Class Submarine Program, we need to ensure they have the requisite capability, and this partnership between the State Government and HII is working to achieve that,” he said.
Mr Malinauskas said the program would help the state build its sovereign capability.
The program is the first under a Memorandum of Understanding signed between the State Government and HII in November last year, following the AUKUS agreement with the United States and United Kingdom that includes a $368bn nuclear-powered submarine construction project centred on Adelaide.
“South Australian businesses have an opportunity to build not just for our own supply chain, but for a global one,” Mr Malinauskas said.
“One you enter the club of building nuclear-powered submarines it means you get access to a broader club... particularly with our friends under AUKUS.”
HII Nuclear Australia vice president of operations Tim Brown said the partnership was about fostering industry and growth in Australia and “among all US allies, paving the way for strategic business development within a global supply chain”.
The company had established a base in South Australia to help with the “industrial mobilisation” of submarine building, he said.
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