iscover
Perth-based engineering company VEEM Ltd has entered the AUKUS supply chain, signing a nine-year, US$33 million (AU$50.1 million) manufacturing licence agreement with American defence prime Northrop Grumman.
Under the deal, VEEM will manufacture and supply precision castings for the US Navy’s Virginia Class nuclear-powered submarines, the same class Australia is set to acquire under the AUKUS partnership from 2032.
The agreement marks a major milestone for Western Australia’s growing defence industry and highlights the Cook government’s commitment to developing sovereign industrial capability and securing the state’s place in the global AUKUS enterprise.
WA Defence Industry Minister Paul Papalia welcomed the announcement, describing it as evidence of the state’s world-class engineering and manufacturing expertise.
“VEEM’s agreement with Northrop Grumman reflects the outstanding capability of Western Australia’s defence industry on the global stage,” Minister Papalia said.
The deal further strengthens WA’s role within the US nuclear submarine supply chain, demonstrating that local companies can meet the stringent quality and security standards required for American defence programs.
Minister Papalia said the defence sector is emerging as a major pillar of the state’s economy.
“Our defence industry is expected to become Western Australia’s second-largest sector after mining – driving diversification and supporting thousands of local jobs,” he said.
The Cook government supported VEEM’s entry into the US submarine supply base through a AU$300,000 partnership program with US shipbuilding giant Huntington Ingalls Industries, which selected five WA small and medium enterprises for inclusion.
Under the Diversify WA economic framework, defence is identified as a priority growth sector, with a focus on supporting AUKUS outcomes and helping local businesses access international supply chains.
“Our highly skilled workforce is proving it can contribute directly to the construction of Virginia Class submarines – delivering benefits for Western Australia and our AUKUS partners,” Minister Papalia said.
The state government’s ongoing support includes targeted funding, formal agreements to help WA firms engage with global contractors, and initiatives to upskill the local workforce to meet the specific demands of defence manufacturing.
