SA defence companies to skill up for nuclear subs program
Five South Australian companies will join a $1 million project to prepare defence firms for the nuclear-powered submarines program.
The program will give five South Australian companies the capabilities required to compete for nuclear-powered submarine supply chain contracts.
Premier Peter Malinauskas said local firms needed the capability to compete for work on the Virginia Class Submarine Program.
South Australia is getting set to build at least five nuclear-powered submarines at the Osborne Naval Shipyards as part of the AUKUS pact with the United States and the United Kingdom, though critics say there are significant questions about the state’s capacity to support this work.
The “Supplier Capability Uplift Program” has been established via an agreement between the state government and the United States’ largest shipbuilder Huntington Ingalls Industries (HII) – one of only two designers and builders of nuclear-powered submarines for the US Navy.
McKechnie Iron Foundry, Century Engineering, Levett Engineering, H-E Parts International and MacTaggart Scott Australia will participate in the $1 million program.
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The five businesses are now undergoing a Supplier Technical Assessment and Validation (STAV) review by HII Nuclear Australia (HII-NA) – HII’s Australian subsidiary – which will identify capability gaps to compete for work on the nuclear-submarine program.
It follows the signing of a Memorandum of Understanding between the state government and HII last year that established both parties’ intent to work cooperatively.
After the STAV review, HII-NA will provide a report including recommendations for capability development and improvement activities for the five participating firms. The companies can then apply for funding to address any gaps.
“AUKUS presents an incredible opportunity to grow high-skilled, well paid jobs at Osborne, building the most complicated machines in human history,” Premier Malinauskas said.
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“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.”
McKechnie Iron Foundry CEO Andrew Nixon welcomed the opportunity.
“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,” he said.
It follows other recent developments in the upgrading of South Australian defence industry infrastructure, including the announcement of a $200 million hangar at a 16-hectare parcel of state government-owned land in Penfield, adjacent to the RAAF’s Edinburgh base.
The facility will have four aircraft bays for deep maintenance and upgrade work on the RAAF’s 18-strong fleet of reconnaissance Boeing 737s.
South Australia has also been tasked with building six Hunter Class Frigates at the Osborne Naval Shipyards, down from nine as previously announced after costs on the program blew out by $20 billion.
Further, replacement ships for the ageing Hobart Class destroyers will also be built in Adelaide immediately following the completion of the Hunter Class ships.
The first Hunter Class frigate is scheduled for delivery in 2032.
