Submarine program cuts would put local jobs at risk

Axiom Precision Manufacturing is counting on work from the Future Submarines program to support its growth strategy.

Apprentice mechanical fitter and turner Georgia Robertson, 21, at Axiom Precision Manufacturing in Adelaide. Picture: Roy VanDerVegt

South Australian business Axiom Precision Manufacturing is counting on work from the Future Submarines program to support its growth strategy and training programs.

The valves and pump manufacturer has signed a memorandum of understanding with Naval Group to do work on the $80bn project.

The company, which employs seven apprentices including 21-year-old Georgia Robertson, opened a new $8.5m factory and expects to increase its workforce from 70 to 100 over two years.

General manager Craig Maynard said he would have to review the company’s expansion plans if expected work on the submarine program failed to eventuate.

“It would certainly put a serious damper on our growth strategy,” Mr Maynard said.

“We would have a look at the training we are doing and the investment we are making.

“We have got seven apprentices, with two or three more being employed this year, and we would have to have a look at that.”

Mr Maynard said he was closely watching the project, after Naval Group Australia chief executive John Davis warned local firms may not get half of the value of the subs’ contracts.

While Axiom Precision Manufacturing has an MOU with Naval Group, it has not finalised a contract.

“We have got an MOU but that is for Naval Group France; that is for a different system,” Mr Maynard said.

“We are working with Naval Group in Australia for some other components but there is no contract (finalised).

“We are worried we could lose work, or the work we have been looking at is not coming to Australia. That would be a great concern if we are starting to lose work already.

“If the prime (contractors) are saying this, then the government is not pushing them to give the work over.”