Defence industry supply chain uplift program underway

Five South Australian companies will undertake a program to help them enter the global supply chain for nuclear-powered submarines, under an agreement secured by Premier Peter Malinauskas with the United States' largest shipbuilder Huntington Ingalls Industries (HII).

The Malinauskas Government has partnered with HII through its entity in Australia, HII Nuclear Australia Pty Ltd (HII-NA), to accelerate the development of the state’s defence industry workforce, skills and supply chain.

The participating companies in the $1 million Supplier Capability Uplift Program are McKechnie Iron Foundry, Century Engineering, Levett Engineering, H-E Parts International and MacTaggart Scott Australia.

Participating businesses are now undergoing a Supplier Technical Assessment and Validation (STAV) review by HII-NA, which will identify capability gaps to compete for work on the Virginia Class Submarine and other U.S. build and sustainment opportunities.

HII is one of only two designers and builders of nuclear-powered submarines for the U.S. Navy.

Every year HII spends approximately $1 billion USD with more than 2,000 suppliers in the United States, with nearly half of this amount going to small businesses.

The Malinauskas Government signed a Memorandum of Understanding with HII Nuclear Australia Pty Ltd in November last year and this program is the first activity under that agreement.  

The MoU outlined a shared intent of both parties to embark on a cooperative working arrangement – leveraging HII’s international industry expertise to prepare South Australia for the major shipbuilding projects on our horizon.

Following the STAV review, HII-NA will provide a comprehensive report that will include recommendations for capability development and improvement activities.

From there, the businesses which have participated in the review and report will be able to apply for matched grant funding through the Department of State Development to address the recommendations arising from the STAV report.

In addition to this program under the MoU, the South Australian Government and HII-NA have committed to working with local companies, academia and education providers to develop a skilled workforce and strengthen Australia’s industry capability, including:

• Workforce and skills interventions to increase diversity of the STEM pipeline and address critical skills needs, and
• Pilot programs with South Australia’s education and training providers for innovative approaches to skills delivery.

The SA Defence Industry Workforce and Skills Report details targeted initiatives that build on work already underway to grow the South Australian defence industry workforce.

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Quotes

Attributable to Peter Malinauskas

AUKUS presents an incredible opportunity to grow high-skilled, well paid jobs at Osborne, building the most complicated machines in human history.

But it’s much more than that.

South Australian businesses have an opportunity to build not just for our own supply chain, but for a global one.

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.

Attributable to Tim Brown, Vice President of Operations for HII Nuclear Australia Pty Ltd.

HII, in partnership with the South Australian Government, is committed to enhancing the capabilities of local suppliers, ensuring they are well-positioned to support the construction and maintenance of nuclear-powered submarines in Australia and the integration into the Virginia Class Submarine program supply base.

This initiative reinforces HII’s dedication to fostering industry growth and innovation in Australia and among all U.S. allies, paving the way for strategic business development within a global supply chain.

Attributable to Andrew Nixon, CEO McKechnie Iron Foundry

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.