- Western Australian engineering company VEEM Ltd secures $33 million deal with one of the United States' top defence contactors
- Nine-year manufacturing licence agreement enables VEEM to supply parts for Virginia-class nuclear-powered submarines
- Cook Government's $300,000 funding support is helping WA industry enter the AUKUS supply chain
The Cook Government welcomes a significant milestone in the State's defence industry, with WA engineering company VEEM Ltd securing a nine-year manufacturing licence agreement with United States' defence prime Northrop Grumman.
The $US33 million deal will see VEEM manufacture and supply precision castings for the US Navy's Virginia-class submarines - the same class Australia is set to acquire under the AUKUS partnership from 2032.
This achievement underscores the Cook Government's strategic commitment to growing sovereign industrial capability and positioning Western Australia as a key contributor to AUKUS outcomes.
It also consolidates WA's presence within the US nuclear-powered submarine supply chain, demonstrating the ability of local industry to meet the stringent standards required for US defence approvals.
The Cook Government is proud to have supported VEEM's rapid entry into the US submarine industrial supply base, stemming from a $300,000 partnership with US prime contractor Huntington Ingalls Industries. VEEM is one of five WA small and medium enterprises selected for this program.
Under the Cook Government's Diversify WA economic framework, local defence industries are a priority sector, with a strong focus on supporting AUKUS outcomes - including championing local small and medium enterprises to break into US defence markets.
This is in the form of funding support, formalising agreements to assist businesses in accessing international contractors, as well as enhancing the skill level and knowledge base of the local workforce to meet defence-specific needs.
As stated by Defence Industries Minister Paul Papalia:
"VEEM's agreement with Northrop Grumman is a reflection of the exceptional expertise of WA defence industry on a global scale.
"Our defence sector is expected to become WA's second-largest industry after mining - helping to diversify the economy and support jobs.
"Our skilled workforce is proving it can bolster the construction of Virginia-class submarines, to the benefit of both Western Australia, and our AUKUS allies."
