Bisalloy Steel will be tested and qualified in the hope of being incorporated into future US submarine manufacturing. Photo: General Dynamics Electric Boat.
Port Kembla NSW-based Bisalloy Steel has received a purchase order from Newport News Shipbuilding in the US to supply steel to the manufacturer.
Newport News is a division of HII and one of only two US submarine shipbuilders currently building Virginia-class nuclear-powered attack submarines and Columbia-class ballistic missile submarines for the US Navy.
The signing of last year’s AUKUS agreement between Australia, the UK and the US not only opened the door for Australia to access high-technology submarines and other weapons systems, but also for Australian industry to become part of the international supply chains for large US defence companies.
The Federal Government says the integration of Australian steel into the Newport News Shipbuilding supply chain paves the way for further opportunities for local suppliers, and the potential to create more highly skilled jobs Down Under.
Newport News Shipbuilding will initially use the steel for training and testing, with the possibility of future orders for incorporation into submarine builds. High-strength steel for armour or submarine hulls needs to be tested rigorously and qualified before it can be used in such applications.
Bisalloy will also supply steel to Australia’s own SSN-AUKUS submarine build program from the late 2030s. It has also been qualified to provide steel for armour plates used on Rheinmetall and Hanwha armoured vehicles under construction for the Australian and German armies.
Minister for Defence Industry Pat Conroy announced the deal during a visit to the US to drum up business for Australian industry and to attend the annual Sea, Air, Space Exposition in Washington, DC.
“This order of Aussie steel from a global leader in shipbuilding is not only testament to the efforts of the hard-working women and men at Bisalloy but also underscores the Albanese Government’s commitment to supporting local industry,” Mr Conroy said.
“This is a wonderful early example of opportunities for Australian companies to be part of the supply chains for the much larger submarine programs of our AUKUS partners.
“The Australian Government is committed to developing Australia’s industrial base to not just build and sustain our nuclear-powered submarine program, but to strengthen the AUKUS trilateral supply chains.”
In a media conference, executive vice-president for business development at HII, Eric Chewning, said the contract was the first integration of an Australian company into the Newport News shipbuilding supply chain.
“HII’s purchase of steel from the Australian manufacturer Bisalloy Steel will be used for training and testing so we can begin the qualification process for the incremental steel-blowing required for AUKUS,” he said.
“This is a critical first step towards an integrated US-UK-Australian supply chain.
“Today HII has met with more than 300 Australian companies to start the engagement process of becoming an HII supplier. We look forward to continuing this engagement and into the future signing more contracts with Australian companies.”
Mr Chewning said the contract was also the start of creating new business opportunities for suppliers on three continents.
“HII is using a crawl-walk-run approach to the onboarding,” he said. “By placing an order for material with Bisalloy Steel, we can onboard the company in Newport News’ supply base and begin the necessary steps to begin the lengthier qualification process for the material to be used shipboard.
“The contract will advantage the entire nuclear shipbuilding enterprise in support of AUKUS. It will ultimately strengthen the supply base in all three countries.”
