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Global Supply Chain program reaps benefits

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Defence’s Global Supply Chain program has delivered contracts to two Australian SMEs that have just secured work on the UK Type 26 Global Combat Ship being built by BAE Systems.

Minister for Defence Industry Christopher Pyne said the latest contracts, awarded to Tasmania's Liferaft Systems Australia and Victoria's Mackay Consolidated Industries, show the success of Defence's Global Supply Chain program.

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Liferaft Systems Australia, which is also a supplier to the Queen Elizabeth Class aircraft carriers, will provide the Type 26 Marine Evacuation System, while Mackay Consolidated Industries will supply pipe hanger inserts, a key component in reducing underwater noise that is essential for anti-submarine warfare.

"I am delighted Tasmanian-based Liferaft Systems Australia will provide the ship’s Marine Evacuation System, while Victorian-based Mackay Consolidated Industries will supply pipe hanger inserts," Minister Pyne said.

"These two contracts demonstrate Australian defence industry’s world-class capabilities and will support around 220 Australian jobs."

Since 2007, the participating GSC primes have awarded close to $1 billion of work to predominantly small-to-medium sized enterprises in Australia. 

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BAE Systems have been part of the GSC program since 2012 and re-signed earlier this year. The company expanded its models to drive an increase in the number of defence and commercial opportunities provided to Australian SMEs.

The GSC program operates on the basis that the prime is contracted to identify and award export contracts on merit, essentially creating a model where the customer is supporting the supplier in navigating the challenges associated with doing business.

Minister Pyne said he is anticipating more contracts for the Type 26 project, through the GSC program, are on the way.

"Australian companies that demonstrate their ingenuity are valued by global prime companies in the United Kingdom and in other markets around the world," he said.

"This highlights the global competitiveness of our Australian defence industry."

While in the UK this week, Minister Pyne met with Charles Woodburn, chief executive of BAE Systems, to discuss further export opportunities for Australian companies within BAE Systems’ global supply chains.

“BAE Systems Australia has one of the nation’s largest defence supply chains and a long and successful history of working closely with Australian suppliers, to open up both local and international opportunities," Minister Pyne said.

“Promoting Australia’s world-class capabilities to our foreign defence partners and the international prime companies is a core element in the defence export strategy, which will be released later this year."

Further information on the Global Supply Chain program can be found here.

Global Supply Chain program reaps benefits
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