Five SA manufacturers preparing for US shipbuilding work

The Government of South Australia has announced that five manufacturers will receive almost $400,000 in support — matched with industry funding — to embark on business development projects in preparedness for US shipbuilding work.

Throughout 2024, South Australian businesses McKechnie Iron Foundry, Century Engineering, Levett Engineering, H-E Parts International (HEPI) and MacTaggart Scott Australia worked with technical experts from US shipbuilder HII to assess their readiness to compete for US naval shipbuilding work.

Matched funding from the South Australian Government will now help participants in this inaugural Supplier Capability Uplift Program address any identified capability gaps.

Buoyed by South Australia’s success, the program has been emulated in Western Australia and, last month, the Australian Government announced the national rollout of a similar initiative — the Australian Submarine Supplier Qualification Pilot.

The partnership between the South Australian Government and HII (through its Australian entity, HII Nuclear Australia Pty Ltd) began in late 2023, with the signing of a memorandum of understanding. Under the spirit of the trilateral AUKUS Agreement, parties agreed to cooperate on the development of South Australia’s defence industry workforce, skills and supply chain.

Tim Brown, Vice President Operations for HII Nuclear Australia, said that HII, in partnership with the South Australian Government, is committed to enhancing the capabilities of local suppliers, “ensuring they are well-positioned to provide sovereign support for the construction and maintenance of conventionally armed, nuclear-powered submarines in Australia and the integration into the US Navy’s Virginia Class Submarine program supply base”.

He went on to say, “We were highly impressed by the capabilities showcased by South Australian industry, especially from companies that are not yet part of the Australian defence supply chain. Their potential is clear, and we are eager to continue engaging with these businesses as we work toward integrating them into the shipbuilding and submarine production supply chains in the United States.

“This collaboration marks an exciting step forward in strengthening our global partnerships and enhancing supply chain innovation.”

With 50 years of business under its belt, program participant HEPI was selected by HII for its in-house engineering capability — having specialised in the engineering, manufacture and production of intricate parts for the mining industry.

“These capabilities, combined with our commitment to continuous improvement and innovation, make us uniquely suited to meet the strict requirements of the Supplier Capability Uplift Program and the broader US supply chain,” said Shane McEvoy, HEPI Branch Manager. “In the short term, the program will enable us to further enhance our operational processes, aligning them with military standards and improving productivity, efficiency and consistency across our manufacturing capability.

“This will strengthen our internal practices and reinforce our reputation as a dependable supplier of precision components.

“By meeting the rigorous requirements of the US military, we will build the expertise and credibility needed to pursue future collaborations in the defence sector.”

Last week, HII announced that Century Engineering, MacTaggart Scott Australia and Levett Engineering have received a Newport News Shipbuilding supplier identification number, meaning that, once fully certified through the Australian Submarine Supplier Qualification process, they’ll be able to participate in the supply chain for the construction of US nuclear-powered submarines.

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