The Australian government on 11 November 2026 announced that Perth-based propulsion specialist VEEM Ltd has received two purchase orders contributing to the construction of Virginia-class submarines. The overall value of the contract is A$ 800,000, approximately US$ 547,000.
Media release of the Australian Minister for Defence (link)
“11 November 2026
Australian company VEEM has secured its first purchase orders to supply specialised components for US Navy Virginia-class submarines, marking an important milestone in the AUKUS partnership.
The WA-based company will supply components to Huntington Ingalls Industries’ (HII) Newport News Shipbuilding, one of only two shipyards that construct Virginia-class submarines for the US Navy.
The initial purchase order, worth about $800,000, sees VEEM become one of the first Australian companies to transition from qualification into production within the US submarine industrial base. The contract with HII – the largest military shipbuilder in the US – is a significant boost for the Australian defence industry and local jobs.
The announcement comes as Australia undertakes increasingly complex submarine maintenance activities at HMAS Stirling and prepares for the commencement of Submarine Rotational Force-West from late 2027, which will see the rotational presence of US and UK nuclear-powered submarines and personnel in Western Australia.
It highlights the growing contribution Australian industry is making to innovation, resilience and capacity across the trilateral submarine industrial base that supports our AUKUS partners and Australia’s future nuclear-powered submarine enterprise.
For the last 38 years, VEEM has been supplying components for Australia’s Collins Class submarines and was the first Australian company qualified through the Australian Submarine Supplier Qualification Program (AUSSQ) to secure production orders from Huntington Ingalls Industries’ Newport News Shipbuilding for the Virginia-class submarine program.
The AUSSQ program demonstrates the Albanese Government’s commitment to uplifting Australian companies to enter United States submarine supply chains, to strengthen Australia’s sovereign industrial capability and build the industrial base needed to support Australia’s future nuclear-powered submarine program.
Through AUSSQ, 56 Australian companies are in the qualification process, with 20 companies receiving Supplier Qualifications and expanding the pool of Australian businesses able to compete for opportunities within United States submarine supply chains.”
“This announcement shows that AUKUS is already creating tangible opportunities for Australian businesses, supporting highly skilled jobs for locals and delivering practical outcomes for Australian industry.
Minister for Defence Industry Pat Conroy MP
“Importantly, the integration of Aussie-made components into the Newport News Shipbuilding supply chain paves the way for further opportunities for local suppliers and potential to create more well paid and highly skilled jobs in Australia.
“Every contract secured by Australian industry helps build the sovereign industrial capability and workforce we need to deliver one of the greatest industrial endeavours in Australian history.”
“AUKUS is creating real opportunities for Western Australia. It will deliver thousands of quality jobs for our kids, create more work for local businesses and diversify our economy.
WA Minister Assisting the Minister for Defence Industries Amber-Jade Sanderson MLA
“I’m proud to see WA operator VEEM become one of the first Australian businesses to manufacture components for the US Navy’s Virginia-class submarines.
“This is a chance to show off our local advanced manufacturing and defence capabilities on the world stage, and is just the beginning of the opportunities we’ll see in the coming years.”
– end of statement –
Naval News comments:
Established in 1968, VEEM Ltd. operates a 14,700 square metre production facility in Perth, Western Australia. The company specialises in propeller- and gyrostabiliser-design and construction. Wider defence-related areas of expertise include propulsion, full shaft lines, submarine valves, naval refits and repairs. VEEM previously participated in a significant number of naval programs, including Oberon- and Collins-class submarines and the Anzac-class frigates.
A related media release by VEEM Ltd. specifies that the order concerns cast parts for the nuclear submarine supply chain, through two purchase orders. The combined value of A$800,000 (US$547,000) indicates a measured integration of Australian defence businesses into American supply lines for submarine construction.
The event is notable within the wider context of political and industrial ambitions within the AUKUS-framework. Strategic cooperation focusing on construction of nuclear powered submarines will require a relatively rapid scaling-up of Australian industrial competency, including certification and workforce development, in order to support both the SRF-West-operational arrangement commencing next year, followed by construction and maintenance support for the future Australia nuclear powered submarines through the AUKUS Optimal Pathway.
