Adelaide company Century Engineering has become the latest Australian business to secure export contracts into the United States naval nuclear supply chain — placing Australian industry inside the AUKUS industrial base for the first time.
The development comes as South Australia's growing defence industry hits a new milestone, generating a record $2.015 billion in economic activity, and leading all states in both defence economic activity and employment on a per capita basis.
The contracts entered into by Century Engineering with HII's Newport News Shipbuilding venture in Virginia will see the Adelaide company producing precision-engineered cranks for use in US aircraft carriers, which are among the world's most complex and highly regulated defence platforms.
Production of the components will begin within weeks.
Century employs more than 190 skilled personnel at its state-of-the-art manufacturing facility in Edinburgh North, where the company have earned a solid reputation as a trusted manufacturer of critical equipment and components.
Century's success follows its qualification to US naval nuclear standards through the Australian Submarine Supplier Qualification (AUSSQ) Program, delivered by H&B Defence on behalf of HII and the Australian Submarine Agency.
This achievement demonstrates that Australian industry can meet the highest global standards for quality, safety and assurance, and validates AUSSQ as a critical enabler of sovereign capability development. It also reinforces Australia's ability to contribute meaningfully to trilateral defence industrial capacity.
Century entered the AUKUS ecosystem through a pilot initiative jointly funded by HII and the South Australian Government, with targeted state grants accelerating its progression to nuclear standards. This milestone highlights the impact of coordinated investment in industrial capability, workforce skills and quality systems to unlock global defence opportunities.
The Australian Government recently announced a $21 million expansion to the AUSSQ Program while the State Government committed $3.3 million in last year's budget to assist local businesses to develop the requisite capability and capacity to enter global supply chains for nuclear-powered submarines and support Australian defence programs.
The latest data from the Australian Bureau of Statistics (ABS) shows South Australia leads all major states on a per capita basis in both defence economic activity and defence employment.
Across 2024-25, SA generated approximately $1,060 in defence Gross Value Added (GVA) per person, almost triple the next closest state in New South Wales which recorded just $381 per person.
South Australia's defence industry generated a total $2.015 billion in GVA, a 4 per cent increase on 2023-24 and more than double the $977 million produced in 2019-20.
GVA measures the additional economic value generated through the production of goods or the provision of services.
In addition, the ABS data also showed South Australia had the highest concentration of defence employment of any state in the country, with 6 defence jobs per 1000 people.
Nationally, the defence industry contributed $12 billion to Australia's gross value added, up 1.2 per cent from the previous year with 63,500 Australians employed across the industry.
South Australia is home to more than 400 businesses who provide goods and services directly to Defence and deliver into the supply chains of prime contractors in Australia and around the world.
By the 2040s more than 10,000 additional jobs are expected to be created thanks largely to the historic AUKUS agreement.
As put by Peter Malinauskas
What is happening at Century Engineering is a shining example of the transformative opportunity AUKUS presents for South Australian manufacturing.
Not so long ago Century was making parts for Victa lawnmowers.
Now, through the opportunity provided by AUKUS, it is making parts for nuclear powered aircraft carriers in the United States.
This work, supported by the South Australian Government in partnership with the Albanese Federal Government, presents a new opportunity to grow a highly complex export industry, and sustain secure, well paid jobs for a long time to come.
According to the Australian Bureau of Statistics, our local defence industry already leads the nation on employment and economic activity, with more than $2 billion generated last financial year.
And that is only set to grow as the AUKUS opportunity is realised.
As put by Chris Picton
The success of Century Engineering entering the US shipbuilding supply chain is a major milestone and will set the foundation for other South Australian companies to follow its lead.
South Australia's doubled its defence industry output over the last five years to $2 billion and that number is set to significantly grow.
The Malinauskas Labor Government is backing defence because it's important for our economic future, our industrial capability and national security.
As put by Century Engineering Managing Director David Heaslip
This is a rewarding acknowledgement of our evolution from simple component manufacturer to suppling advanced manufacturing capability to US naval nuclear platforms.
As put by H&B Defence Managing Director Tim Brown
Century Engineering's success marks a real shift for Australian industry under AUKUS — from building capability to delivering into it.
This is more than a single contract; it shows Australian SMEs can meet the highest standards and take their place in trusted international defence supply chains, contributing at scale.
As put by H&B Defence Board Member and Babcock Acting CEO Leah Grantham
AUSSQ is establishing a pipeline of Australian industry ready to participate in long term naval programs across the United States and United Kingdom.
For South Australia, this represents a significant opportunity. The state's strength in advanced manufacturing, built on decades of shipbuilding, automotive production, and continued investment in precincts like Tonsley and Lot Fourteen, positions it well to play a leading role in the AUKUS industrial ecosystem, delivering enduring benefits to our communities.
