Australian industry has reached a new milestone under AUKUS, with Australian-made steel set to be used to build US Navy Virginia-class submarines for the first time, according to the Australian Submarine Agency.
In a news release, the agency said Australian steelmaker Bisalloy Steels had received a purchase order worth about US$2 million from General Dynamics Electric Boat for HY80 steel plate used in Virginia-class submarine construction.
The order follows Bisalloy’s successful qualification under the Australian Government’s Defence Industry Vendor Qualification (DIVQ) Program. The program is designed to help Australian companies meet the strict requirements needed to supply the US and UK submarine industries.
The Australian Submarine Agency said the qualification involved cooperation between Bisalloy, BlueScope, General Dynamics Electric Boat and government representatives to demonstrate that the companies could meet the standards required for submarine construction.
BlueScope produces the steel plate in Australia, while Bisalloy carries out additional processing and heat treatment to produce HY80 steel. The agency said the material underwent extensive testing during the qualification process.
HY80 is a high-strength steel designed for demanding naval applications. In this case, the qualification process was intended to demonstrate that Australian-produced material could meet the requirements for use in US submarine construction.
Kylie Wright, Head of Workforce and Supply Chain at the Australian Submarine Agency, said the order demonstrated that Australian companies could meet the high standards required by the US submarine sector.
“This milestone shows Australian companies can meet the rigorous standards needed to support one of the world’s most advanced submarine programs,” Wright said.
She said the result was also the product of cooperation between companies, governments and shipbuilders involved in AUKUS.
“It is the result of strong collaboration between industry, governments and shipbuilders across the AUKUS partnership, and reflects the capability that exists within Australia’s manufacturing sector,” Wright said.
According to the agency, the order also represents a move from Australian companies undergoing qualification to actually supplying products to allied submarine programs.
“AUKUS is creating real opportunities for Australian industry,” Wright said. “Through programs like DIVQ, we are helping Australian suppliers build the skills, processes and credentials needed to compete for work in the trilateral submarine industrial base.”
The agency said the first order would give Australian industry experience in supplying the US submarine sector and could help position local companies for further opportunities under AUKUS.
It said the development was also relevant to Australia’s future nuclear-powered submarine program, as the country works to build the industrial skills and supply chains needed to support the future submarine enterprise.
The Australian Submarine Agency said steel supply was a priority for the US as it works to expand its submarine-building capacity. It said Australian suppliers could contribute to those efforts while building manufacturing capability at home.
The Bisalloy order is the latest example of an Australian company gaining access to an AUKUS submarine supply chain through the DIVQ Program, which forms part of Australia’s AUKUS Submarine Industry Strategy.
