VEEM has secured a nine-year manufacturing licence agreement with United States’ defence prime Northrop Grumman, allowing the company to enter the AUKUS supply chain.
“VEEM’s agreement with Northrop Grumman is a reflection of the exceptional expertise of WA defence industry on a global scale," Western Australian Defence Industries Minister, Paul Papalia, said.
The US $33 million (approx. AU $50.1 million) deal will see VEEM manufacture and supply precision castings for the US Navy’s Virginia-class submarines - the same class Australia is set to acquire under the AUKUS partnership from 2032.
“Our skilled workforce is proving it can bolster the construction of Virginia-class submarines, to the benefit of both Western Australia, and our AUKUS allies," Papalia stated.
The WA Government has welcomed the milestone, as VEEM is a WA based engineering company.
“Our defence sector is expected to become WA’s second-largest industry after mining - helping to diversify the economy and support jobs," Papalia emphasised.
The WA Government has supported VEEM’s entry into the US submarine industrial supply base, stemming from a $300,000 partnership with US prime contractor Huntington Ingalls Industries. VEEM is one of five WA small and medium enterprises (SME) selected for this program.
Under the WA Government’s Diversify WA economic framework, local defence industries have become a priority sector, with a strong focus on supporting AUKUS outcomes - including supporting local SME to break into US defence markets.
This encouragement has come in the form of funding support, formalising agreements to assist businesses in accessing international contractors, as well as enhancing the skill level and knowledge base of the local workforce to meet defence-specific needs.
In August 2025, ASC awarded VEEM a six-year, $65 million contract to continue manufacturing and supplying critical components for Australia’s Collins Class submarines. VEEM is the licenced manufacturer and service agent of defence 55 and 44 series valves for the UK company Flowserve Flow Control, the original equipment manufacturer of the ball valves.