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Defence Industry Minister Pat Conroy has announced that Wollongong-based Bisalloy Steels will provide submarine-grade steel to the US Virginia Class supply chain for the first time in a major boost for Australian industry.
As part of this deal worth US$2 million ($2.8 million), Bisalloy Steels will provide HY80 steel plate to General Dynamics Electric Boat (GDEB) to support the construction of Virginia Class nuclear-powered submarines.
This order highlights the world-class capabilities of Australia’s manufacturing sector and reflects the growing integration of Australian industry into allied submarine supply chains and will provide a base from which to ramp up when construction on Australia’s SSN-AUKUS production commences at Osborne next decade.
Minister Conroy celebrated this milestone and the impact it will have for Bisalloy and the broader Australian defence industrial base, saying, “For the first time, Australian-made steel will be used in the construction of US Virginia Class submarines, demonstrating the world-leading capabilities of our manufacturing sector and the growing contribution Australian industry is making to allied defence capability.”
The order follows Bisalloy’s successful completion and qualification to the US Navy’s structural steel standards as part of the Australian government’s Defence Industry Vendor Qualification Program.
As part of the qualification process, Bisalloy is partnering with BlueScope, the Australian Submarine Agency, GDEB and the US Direct Reporting Portfolio Manager for Submarines, demonstrating the capacity of Australian industry to meet the stringent requirements of the US submarine industrial base.
Minister Conroy said: “This is exactly what AUKUS is designed to achieve. With this initial order, the AUKUS program is creating tangible opportunities for Australian industry while lifting their technical standards. It is supporting local workers and businesses and building the industrial capability that will underpin Australia’s future nuclear-powered submarine enterprise.”
BlueScope Steel at Port Kembla manufactures the raw steel plate, while Bisalloy conducts the specialised processing and heat treatment required to produce and deliver the HY80 steel necessary for the submarines.
As part of the trilateral AUKUS partnership, the United States is continuing to expand its submarine industrial base, with increasing emphasis on strengthening steel production capacity as a critical element of future submarine construction.
Australian manufacturers are expected to play an increasingly important role in supporting this effort, enhancing the resilience of the trilateral AUKUS industrial base while creating new opportunities for domestic suppliers to integrate into one of the world’s most advanced naval shipbuilding ecosystems.
Beyond fulfilling immediate production requirements, the contract will provide Australian industry with valuable experience in meeting the exacting standards of nuclear-powered submarine construction, improving its competitiveness for future work across the AUKUS enterprise.
It also highlights the growing economic dividend of the partnership, with Australian companies securing high-value manufacturing opportunities, supporting skilled local jobs and building the sovereign industrial capability required to deliver and sustain Australia’s future nuclear-powered submarine fleet.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
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