VEEM secures first Australian HII Virginia Class Submarine purchase orders
VEEM Limited (ASX: VEE) is the first qualified AUSSQ supplier in Australia to receive Virginia Class Submarine purchase orders from HII for the new build program. The initial purchase orders have a combined value of approximately A$0.8 million.
VEEM is an Australian Defence manufacturer of marine propulsion and large gyrostabiliser systems. According to the company, the orders represent an important commercial milestone in its expansion into the US defence supply chain.
The “first” status applies specifically to being the first qualified AUSSQ supplier in Australia to receive these HII orders. The A$0.8 million figure relates to initial orders only and is not a revenue forecast or guidance.
When big ASX news breaks, our subscribers know first
What the milestone means for VEEM
Qualification pathway
The purchase orders followed over 12 months of qualification and audit processes undertaken by VEEM to meet the requirements of the US submarine supply chain. Managing Director Mark Miocevich also referred to the last two years spent building on the company’s Collins Class submarine expertise to meet AUSSQ requirements.
Key facts from the announcement:
- First Australian company to receive HII Virginia Class orders via AUSSQ
- Approximately A$0.8 million in initial purchase orders
- 38 years as a Collins Class submarine program supplier
- Additional tenders submitted
Director quote
Mark Miocevich, Managing Director
“VEEM has been a critical supplier to the Collins Class submarine program for 38 years now… We are very proud to be the first company in Australia to receive orders from HII for the Virginia class program.”
AUSSQ and AUKUS explained
AUSSQ stands for the Australian Submarine Supplier Qualification program. VEEM received the HII orders through this program, which it completed before the orders were placed.
The company links its tender pipeline to the AUKUS program. No values for any further orders are disclosed.
Pipeline and next steps
VEEM has submitted tenders for additional opportunities, which are expected to yield significant further orders as the AUKUS program gathers momentum. The announcement does not disclose tender values, timing or award dates.
VEEM FY26 results showed defence revenue rising 130% in the second half, from $3.7m to $8.6m, driven by ASC submarine refit orders, which gives a sense of the scale of the company’s existing defence business.
| Fact | Investor relevance |
|---|---|
| Initial orders of approximately A$0.8M | First HII purchase orders |
| 12+ months of qualification | Barrier to entry |
| Tenders submitted | Potential further orders |
The announcement does not disclose order delivery timelines, margins, the specific components supplied or the total HII program value.
VEEM is headquartered in Perth, Western Australia, and operates from a 15,700 sqm facility that includes Australia’s largest non-ferrous foundry. It employs approximately 195 staff and has been listed on the ASX since 2016.
A recently completed factory extension adds about 1,000 sqm of manufacturing capacity, with new CNC machines due for commissioning in the first quarter of FY27.
Don’t Miss the Next Defence Manufacturing Winner
Get FREE breaking ASX news delivered to your inbox within minutes of release, with in-depth analysis already done. Join 20,000+ subscribers who stay ahead of the market with Big News Blast. Click the “Free Alerts” button to receive industrial and defence updates the moment news breaks.