SA firms prepare for new pipeline of overseas AUKUS work

Experts say the AUKUS security pact will lead to greater opportunities for South Australian firms to land defence projects in America and Britain.

Innovative South Australian firms are set to cash in on a multitude of opportunities that will open within the US and British defence industries under the AUKUS security pact, experts say.

There’s also a notion Australian welders and electricians could work in the US to relieve the overstretched Virginia-class submarine production line, while Adelaide builds up its own capability to build nuclear-powered boats at the Osborne shipyard.

There are warnings the full potential won’t be realised unless the US slashes significant red tape and legacy restrictions preventing the transfer of defence technology.

Democratic congressman Joe Courtney said there was “no question” the US would need Australia’s help to relieve its overstretched defence industry.

“It’s going to be a mixture, everybody is going to be contributing to each other’s needs,” Mr Courtney said.

“Contributing to the Virginia (submarine) program is just a logical way to increase proficiency for welders and electricians and all the skilled jobs that take that repetition and cadence to really get up to the high level of quality.”

Nova Systems chief executive Jim McDowell said there would be “massive and enduring” opportunities for SA businesses under AUKUS, beyond the local construction of nuclear-powered submarines.

Nova Systems chief executive Jim McDowell said the opportunities would be “massive and enduring”.

“The real opportunity is the ability of Australian industry to contribute to the whole life cycle, including the design of, whatever products are required for AUKUS,” Mr McDowell said.

The ex-BAE Systems Australia chief also said it was imperative to immediately establish an “AUKUS supply chain”, whereby the three nations contribute to each other’s defence industries in a seamless manner.

“The key is not that we participate in UK or US supply chains, but that it becomes genuinely a three-country supply chain and therefore that we rely upon each other,” Mr McDowell said.

“The Australian industry, and the South Australian industry particularly, has to have a role in the creation of intellectual property.”

Defence Teaming Centre boss Audra McCarthy said South Australian companies were well placed to gain work on overseas supply chains in America and Britain – but significant red tape must be slashed, which would involve reforming the US’ International Traffic in Arms Regulations (ITAR).

“No changes have been made to ITAR since the AUKUS announcement … so unless that vehicle is reformed, nothing can change,” Ms McCarthy said.

“That was the intention of AUKUS – the opportunity to provide capacity to those supply chains so that each of the allied countries can actually provide capacity and relief to what’s already overpopulated supply chains.”

Mr Courtney said an AUKUS “carve-out” removing those barriers was needed.

“That is clearly a must-do item for Congress,” he said.

Mr McDowell said it would be a “long, hard and difficult effort to convince congressmen who grew up in Connecticut that work gets transferred to Adelaide, Australia”.

Kilkenny-based piping manufacturer Novafast is building a strategy of developing new technology to share with allied partners, including America and Britain.

Novafast Business Manager David Figallo says his company is preparing to capitalise on the future pipeline of defence work. Picture: Emma Brasier

The family-owned business, founded in 1999, supplies composite piping systems for use in harsh environments around the world, including in maritime defence and in oil and gas infrastructure.

BAE Systems contracted Novafast last year to manufacturer hundreds of pipe units for Hunter-class frigate prototyping.

Novafast business manager David Figallo said the opportunities for SA under AUKUS were “huge”.

“We had quite a vibrant manufacturing economy a few decades ago and now it’s coming back around now with the growth of the defence sector, and South Australia is really leading that, particularly from a maritime perspective,” Mr Figallo said.

“We want to take our technology global, which is what programs like the Hunter-class frigates with BAE Systems allows us to do.

“That, in turn, grows business, opportunities in the state and jobs, so it has massive flow-on effects, which is quite important for our longevity.”

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