First AUKUS Defence Industry Vendor Qualification contracts awarded to Australian businesses

The Albanese Government has awarded several contracts under a qualification process that paves the way for the Australian businesses to enter UK and US submarine supply chains, underscoring further progress in delivering the AUKUS program. 

The Defence Industry Vendor Qualification (DIVQ) Program aims to enable Australian businesses to supply their products and services into the AUKUS trilateral submarine industrial base. It provides a vital conduit for helping Australian businesses, supporting high-skilled and well-paid jobs in locations across the country, including in regional Australia.  

Through the DIVQ Program, the Australian Submarine Agency (ASA) is working with AUKUS partners to streamline processes and support the qualification of Australian businesses and their products and services.

The contracts to HIFraser, Mack Valves, Bale Defence and STAUFF Corporation, announced today, will enable these businesses to commence manufacture of a sample of standard US Navy valves and pipe fittings as part of their qualification process – a critical step to becoming approved vendors within the US submarine industrial base. Once qualified, these businesses will have the opportunity to manufacture and supply valves or pipe fittings for use in the construction and sustainment of a range of navy platforms, including Virginia class submarines.

HIFraser, Mack Valves, Bale Defence and STAUFF Corporation are Australian businesses with strong histories supporting Defence projects, including the Collins class submarine capability.

• HIFraser has signed an initial contract with the Australian Government, to produce 15 valves (five lots of three valve types). HiFraser will also be producing pipe fittings for qualification. HIFraser employs 135 Australians, with locations in Sydney, Melbourne, Gold Coast, Brisbane and O’Connor (WA). 
• Mack Valves has signed an initial contract with the Australian Government to produce 15 valves (five lots of three valve types). Mack Valves employs 33 Australians, with locations in Townsville, Wollongong, Melbourne and Adelaide.
• Bale Defence has signed an initial contract to manufacture pipe fittings. Bale Defence employs 44 Australians in Port Macquarie NSW.
• STAUFF Corporation has signed an initial contract to manufacture pipe fittings. Stauff Corporation employs 92 Australians with locations in Wollongong, Adelaide, Brisbane, Melbourne and Sydney.

Once qualified these businesses will become part of the US supply chains, giving them the opportunity to receive orders to meet demand. This Australian Government funding gives them that opportunity to prove their manufacturing capability and in partnership with our AUKUS partners supports the approval process. Qualification takes time; the DIVQ gets Australian business ready to meet demand.

This is a major milestone in our efforts to expand Australia’s submarine industrial base, promote opportunities for Australian businesses in the US and UK supply chains, and strengthen the resilience of our collective industrial capacity through AUKUS.

This is a practical step in Australia’s acquisition of conventionally armed, nuclear‑powered submarines and an investment in Australian manufacturing. 

For further information on becoming involved in the build and sustainment supply chains, the Defence Industry Vendor Qualification Program and industry engagement activities, companies can register their interest through the ICN Gateway. 

Quotes attributable to the Minister for Defence Industry and Capability Delivery, the Hon Pat Conroy MP:

“This qualification program is critical to delivering on AUKUS but also demonstrates how AUKUS can deliver for Australians and local businesses by providing opportunities for growth and jobs.

“It helps to fill the gaps within the supply chains of our AUKUS partners, giving greater strength and resilience to these supply chains.

“It also contributes to the development of Australian businesses ahead of the build and sustainment of our own conventionally armed, nuclear-powered submarines.”