Western Australian engineering company VEEM Ltd has taken a major step into the global defence supply chain, securing a nine-year manufacturing licence agreement worth $33 million with United States defence prime Northrop Grumman.
Under the deal, VEEM will produce precision castings for the US Navy’s Virginia-class nuclear-powered submarines – the same class of vessels Australia is set to acquire from 2032 under the AUKUS partnership.
The agreement marks a significant milestone for Western Australia’s defence industry and demonstrates the state’s growing ability to meet the stringent standards required for US defence approvals.
The WA Government supported VEEM’s entry into the US submarine industrial base with $300,000 in funding through a partnership with US contractor Huntington Ingalls Industries. VEEM was one of five WA small and medium enterprises selected for the program, aimed at helping local manufacturers integrate into the AUKUS supply chain.
Defence industries minister Paul Papalia said the achievement reflected the high level of skill and capability within Western Australia’s defence sector.
“VEEM’s agreement with Northrop Grumman is a reflection of the exceptional expertise of WA defence industry on a global scale,” Papalia said. “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.”
The initiative aligns with the Cook Government’s Diversify WA economic framework, which identifies local defence industries as a key priority sector. Through this strategy, the government is focused on supporting AUKUS outcomes by helping local small and medium enterprises break into international defence markets, enhancing workforce skills, and building sovereign industrial capability.
The partnership with Northrop Grumman is also seen as a pathway for further Western Australian participation in global supply chains associated with AUKUS and beyond. It cements the state’s growing reputation as a hub for advanced manufacturing and precision engineering, capable of contributing to high-technology defence programs.
Papalia said the state’s proactive investment in partnerships and workforce capability was already paying dividends, with companies like VEEM demonstrating that Western Australia could compete successfully on the world stage.
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