South Australia’s defence manufacturing sector has reached a new milestone, with Adelaide-based Century Engineering becoming the first Australian company to secure export contracts within the United States naval nuclear supply chain.
The contracts, announced by the SA Government, will see Century Engineering manufacture precision-engineered cranks for use in US aircraft carriers through an agreement with HII’s Newport News Shipbuilding operation in Virginia. Production is expected to begin within weeks.
The announcement comes as new Australian Bureau of Statistics data showed South Australia’s defence industry generated a record $2.015 billion in gross value added during 2024-25, up 4 per cent from the previous year and more than double the $977 million recorded in 2019-20.
The SA Government said Century Engineering secured the work after qualifying to US naval nuclear standards through the Australian Submarine Supplier Qualification (AUSSQ) Program, delivered by H&B Defence on behalf of HII and the Australian Submarine Agency.
Premier Peter Malinauskas said the contract demonstrated the opportunities emerging from the AUKUS partnership for local manufacturing businesses.
“What is happening at Century Engineering is a shining example of the transformative opportunity AUKUS presents for South Australian manufacturing,” Malinauskas said.
“Not so long ago Century was making parts for Victa lawnmowers. Now, through the opportunity provided by AUKUS, it is making parts for nuclear powered aircraft carriers in the United States.”
Malinauskas said the work was supported by the South Australian and federal governments and would help develop “a highly complex export industry” while sustaining long-term jobs.
According to the ABS data cited by the government, South Australia led all major states on a per capita basis for both defence economic activity and defence employment, generating approximately $1,060 in defence gross value added per person. The state also recorded the highest concentration of defence employment nationally, with six defence jobs per 1,000 people.
Health and Wellbeing Minister Chris Picton said Century Engineering’s entry into the US shipbuilding supply chain could pave the way for other local companies.
“The success of Century Engineering entering the US shipbuilding supply chain is a major milestone and will set the foundation for other South Australian companies to follow its lead,” Picton said.
Century Engineering employs more than 190 staff at its Edinburgh North manufacturing facility.
Managing director David Heaslip described the agreement as recognition of the company’s transition toward advanced manufacturing capability.
“This is a rewarding acknowledgement of our evolution from simple component manufacturer to supplying advanced manufacturing capability to US naval nuclear platforms,” Heaslip said.
H&B Defence Managing Director Tim Brown said the contract reflected a broader shift for Australian industry participation under AUKUS.
“This is more than a single contract; it shows Australian SMEs can meet the highest standards and take their place in trusted international defence supply chains,” Brown said.
H&B Defence Board Member and Babcock Acting CEO Leah Grantham said the AUSSQ program was helping establish a pipeline of Australian businesses capable of participating in long-term naval programs across the United States and United Kingdom.
The SA Government said more than 400 South Australian businesses currently provide goods and services directly to Defence or global defence supply chains, with more than 10,000 additional jobs expected to be created by the 2040s as the AUKUS program develops.
