Port Kembla NSW-based Bisalloy Steel has
received a purchase order from Newport News Shipbuilding in the US to supply
steel to the manufacturer.
Newport News is a division of HII and one of
only two US submarine shipbuilders currently building Virginia-class
nuclear-powered attack submarines and Columbia-class ballistic missile
submarines for the US Navy.
The signing of last year’s AUKUS agreement
between Australia, the UK and the US not only opened the door for Australia to
access high-technology submarines and other weapons systems, but also for
Australian industry to become part of the international supply chains for large
US defence companies.
The Federal Government says the integration
of Australian steel into the Newport News Shipbuilding supply chain paves the
way for further opportunities for local suppliers, and the potential to create
more highly skilled jobs Down Under.
Newport News Shipbuilding will initially use
the steel for training and testing, with the possibility of future orders for
incorporation into submarine builds. High-strength steel for armour or
submarine hulls needs to be tested rigorously and qualified before it can be
used in such applications.
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Bisalloy will also supply steel to
Australia’s own SSN-AUKUS submarine build program from the late 2030s. It has
also been qualified to provide steel for armour plates used on Rheinmetall and
Hanwha armoured vehicles under construction for the Australian and German
armies.
Minister for Defence Industry Pat Conroy
announced the deal during a visit to the US to drum up business for Australian
industry and to attend the annual Sea, Air, Space Exposition in Washington, DC.
“This order of Aussie steel from a global
leader in shipbuilding is not only testament to the efforts of the hard-working
women and men at Bisalloy but also underscores the Albanese Government’s
commitment to supporting local industry,” Mr Conroy said.
“This is a wonderful early example of
opportunities for Australian companies to be part of the supply chains for the
much larger submarine programs of our AUKUS partners.
“The Australian Government is committed to
developing Australia’s industrial base to not just build and sustain our
nuclear-powered submarine program, but to strengthen the AUKUS trilateral
supply chains.”
In a media conference, executive
vice-president for business development at HII, Eric Chewning, said the
contract was the first integration of an Australian company into the Newport
News shipbuilding supply chain.
“HII’s purchase of steel from the Australian
manufacturer Bisalloy Steel will be used for training and testing so we can
begin the qualification process for the incremental steel-blowing required for
AUKUS,” he said.
“This is a critical first step towards an
integrated US-UK-Australian supply chain.
“Today HII has met with more than 300
Australian companies to start the engagement process of becoming an HII
supplier. We look forward to continuing this engagement and into the future signing
more contracts with Australian companies.”
Mr Chewning said the contract was also the
start of creating new business opportunities for suppliers on three continents.
“HII is using a crawl-walk-run approach to
the onboarding,” he said. “By placing an order for material with Bisalloy
Steel, we can onboard the company in Newport News’ supply base and begin the
necessary steps to begin the lengthier qualification process for the material
to be used shipboard.
“The contract will advantage the entire
nuclear shipbuilding enterprise in support of AUKUS. It will ultimately
strengthen the supply base in all three countries.”