Submarine firm ASC helps keep suppliers above water

One of Australia’s vital defence companies has moved to protect companies in its supply chain from the ravages of COVID-19.

Collins Class submarines are an essential part of Australia’s naval capability. Picture: Royal Australian Navy

One of Australia’s most vital ­defence companies moved quickly to protect local companies in its supply chain from the economic rav­ages of COVID-19.

ASC Pty Ltd provides the maintenance and complex ­upgrades that keep the navy’s six Collins-class submarines at sea, safely and at top performance.

When the pandemic struck, ASC stepped up its engagement and support of the companies in its Australian supply chain to ensure they could continue to function.

To strengthen the sustainment program, it brought forward ­millions of dollars to its vital Australian small and medium enterprises through accelerated payment arrangements, and placed millions more in new ­orders to ensure the sovereign industrial capability to deliver Australia’s submarine fleet is preserved.

ASC chief executive and managing director Stuart Whiley said ASC had spent nearly $20m with Australian SMEs since the pandemic began, including milestone payments for work in progress to ensure the ongoing operations of suppliers. As well, the company brought forward $12m in orders with Australian SMEs to give them cashflow confidence.

Each year ASC spends more than $200m buying equipment, parts and services in Australia.

“It’s imperative that ASC maintains a stable, sovereign ­supply chain for the submarines we sustain so that we continue to deliver Collins-class availability at above international benchmarks,” Mr Whiley said.

“Since the Coles review in 2012, ASC has nurtured a highly capable, high-quality stable of suppliers, increasing Australian content to 92 per cent for submarine sustainment.” That was up from about 70 per cent during the ­Collins-class build.

“ASC’s management of the sovereign submarine supply chain is about delivering sovereign industrial capability to support the Collins-class fleet, a key objective of defence industry policy,” Mr Whiley said. “So, at every ­opportunity, we seek to fulfil orders in Australia where capability, value for money and security of supply can be demonstrated.”

Mr Whiley said supporting Australian suppliers made the submarine program stronger and more resilient in uncertain times.

“ASC’s experience and capability in supply chain management delivers increased resilience and security in submarine sustainment,” he said. ASC and Defence would ensure the submarines were available well into the future.

“With more than 30 years’ experience in building and maintaining submarines in Australia, ASC has much to offer in establishing sovereign Australian supply chains.”

ASC manages the flow of parts and supplies to Australian submarines from more than 500 companies in Australia and internationally.

Acknowledging the uncertainty brought by the pandemic, the $14m paid to SMEs included an accelerated $500,000 payment to a family-owned Victorian pump maker that had been a high-quality supplier since the Collins build.

A Newcastle supplier of ­precision diesel engine parts received an accelerated payment of $300,000. That will ensure it can continue to operate, as ASC ­accounts for about half of its ­turnover.

ASC also placed a $4.5m order with a Perth company that ­supplies components for high pressure air equipment.

“These companies are not big names or mass employers but they’re extremely important for continued Collins-class availabil­ity,” Mr Whiley said.

“It is vital that we maintain great relationships with our entire supply chain and see their continued contribution to the program.

“This means the companies have confidence to keep their workforce on, and ASC and the nation can be confident that the Collins-class will continue to serve the Royal Australian Navy once this Covid-19 emergency has ­lifted.”