Australian industry has reached an important AUKUS milestone(Opens in a new tab/window), with Australian-produced submarine-grade steel set to be used in the construction of United States Navy Virginia-class submarines for the first time.
Bisalloy Steels has received a purchase order from General Dynamics Electric Boat (GDEB), valued at approximately US$2 million, for HY80 steel plate used in Virginia-class submarine construction.
The order marks the first time Australian-produced steel has entered the Virginia-class submarine supply chain and highlights the growing role Australian industry is playing in supporting allied submarine programs.
The achievement follows Bisalloy's successful qualification through the Australian Government's Defence Industry Vendor Qualification (DIVQ) Program, which helps Australian companies meet the strict standards required to enter the United States submarine industrial base.
The qualification process involved close collaboration between Bisalloy, BlueScope, the Australian Submarine Agency, GDEB and the Direct Reporting Portfolio Manager for Submarines to demonstrate Australian industry's ability to meet the stringent standards required for submarine construction.
BlueScope manufactures the raw steel plate in Australia, while Bisalloy carries out the specialised processing and heat treatment needed to produce HY80 steel. HY80, or High Yield 80, is a high-strength steel developed for demanding naval applications where strength, toughness and reliability are critical. The qualification process involved extensive testing to ensure the material met the standards required for submarine construction.
Head of Workforce and Supply Chain at the Australian Submarine Agency, Kylie Wright, said the order was a significant achievement for Australian industry and demonstrated the value of long-term investment in supplier capability.
‘This milestone shows Australian companies can meet the rigorous standards needed to support one of the world's most advanced submarine programs,’ said Ms Wright.
‘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.’
Ms Wright said the order highlighted how Australian businesses were moving from qualification activities to delivering products into allied submarine supply chains.
‘AUKUS is creating real opportunities for Australian industry. 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.
‘This first order provides valuable experience for Australian industry and helps position local companies for future opportunities supporting both allied submarine programs and Australia's future nuclear-powered submarine enterprise.’
Steel supply is a priority for the United States as it looks to increase capacity across its submarine industrial base. Australian industry is supporting these efforts, contributing to allied defence capability while creating opportunities for local manufacturers.
Bisalloy's achievement is the latest example of Australian industry securing opportunities within AUKUS submarine supply chains through the DIVQ Program.
As a key initiative of Australia's AUKUS Submarine Industry Strategy, DIVQ is helping Australian businesses meet the demanding standards required by US and UK submarine programs, opening the door to high-value, long-term industrial opportunities while helping build the workforce, skills and industrial capability needed to support Australia's future nuclear-powered submarine program.