HII to Strengthen Nuclear-Powered Submarine Supply Chain
HII (NYSE: HII), America's largest military shipbuilder, has secured a contract worth $9.6 million AUD to implement the Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years. The initiative aims to identify and qualify Australian suppliers for the U.S. submarine industrial base.
The program supports the AUKUS trilateral security partnership between Australia, UK, and US, focusing on developing a sovereign and internationally integrated supply chain for nuclear-powered submarines. HII, which annually spends about $1 billion with over 2,000 U.S. suppliers, will leverage its 60-year experience in managing complex supplier networks for U.S. Navy nuclear-powered submarine programs.
The AUSSQ pilot program, part of Australia's comprehensive AUKUS Submarine Industry Strategy, will use a B2B model enabling HII Australia to work directly with Australian businesses. The contract includes an extension option based on achievement and will be managed by HII's Australian operations in partnership with H&B Defence, a HII and Babcock joint venture.
HII (NYSE: HII), il più grande costruttore navale militare d'America, ha ottenuto un contratto del valore di 9,6 milioni di AUD per implementare il programma pilota di Qualificazione dei Fornitori di Sottomarini Australiani (AUSSQ) nei prossimi due anni. L'iniziativa mira a identificare e qualificare i fornitori australiani per la base industriale dei sottomarini degli Stati Uniti.
Il programma supporta la partnership trilaterale di sicurezza AUKUS tra Australia, Regno Unito e Stati Uniti, concentrandosi sullo sviluppo di una catena di approvvigionamento sovrana e internazionalmente integrata per i sottomarini a propulsione nucleare. HII, che spende annualmente circa 1 miliardo di dollari con oltre 2.000 fornitori statunitensi, sfrutterà la sua esperienza di 60 anni nella gestione di reti di fornitori complesse per i programmi di sottomarini a propulsione nucleare della Marina degli Stati Uniti.
Il programma pilota AUSSQ, parte della strategia globale per l'industria dei sottomarini AUKUS dell'Australia, utilizzerà un modello B2B che consentirà a HII Australia di lavorare direttamente con le aziende australiane. Il contratto include un'opzione di estensione basata sui risultati raggiunti e sarà gestito dalle operazioni australiane di HII in collaborazione con H&B Defence, una joint venture tra HII e Babcock.
HII (NYSE: HII), el mayor constructor naval militar de América, ha asegurado un contrato por un valor de 9.6 millones AUD para implementar el programa piloto de Calificación de Proveedores de Submarinos Australianos (AUSSQ) durante los próximos dos años. La iniciativa tiene como objetivo identificar y calificar a los proveedores australianos para la base industrial de submarinos de EE. UU.
El programa apoya la asociación trilateral de seguridad AUKUS entre Australia, el Reino Unido y EE. UU., enfocándose en desarrollar una cadena de suministro soberana e integrada internacionalmente para submarinos de propulsión nuclear. HII, que gasta anualmente alrededor de 1 mil millones de dólares con más de 2,000 proveedores estadounidenses, aprovechará su experiencia de 60 años en la gestión de redes de proveedores complejas para los programas de submarinos de propulsión nuclear de la Marina de EE. UU.
El programa piloto AUSSQ, parte de la estrategia integral de la industria de submarinos AUKUS de Australia, utilizará un modelo B2B que permitirá a HII Australia trabajar directamente con empresas australianas. El contrato incluye una opción de extensión basada en los logros y será gestionado por las operaciones australianas de HII en asociación con H&B Defence, una empresa conjunta entre HII y Babcock.
HII (NYSE: HII), 미국 최대의 군함 건조업체가 향후 2년 동안 호주 잠수함 공급업체 자격(AUSSQ) 파일럿 프로그램을 시행하기 위해 960만 호주 달러 규모의 계약을 체결했습니다. 이 이니셔티브는 미국 잠수함 산업 기반을 위한 호주 공급업체를 식별하고 자격을 부여하는 것을 목표로 하고 있습니다.
이 프로그램은 호주, 영국 및 미국 간의 AUKUS 삼자 안보 파트너십을 지원하며, 핵 추진 잠수함을 위한 주권적이고 국제적으로 통합된 공급망 개발에 중점을 두고 있습니다. HII는 매년 10억 달러를 2,000개 이상의 미국 공급업체와 함께 사용하며, 미국 해군의 핵 추진 잠수함 프로그램을 위한 복잡한 공급업체 네트워크 관리에서 60년의 경험을 활용할 것입니다.
AUSSQ 파일럿 프로그램은 호주의 포괄적인 AUKUS 잠수함 산업 전략의 일환으로, HII 호주가 호주 기업과 직접 협력할 수 있도록 하는 B2B 모델을 사용할 것입니다. 이 계약에는 성과에 기반한 연장 옵션이 포함되어 있으며, HII의 호주 운영 부서가 HII와 Babcock의 합작 투자인 H&B Defence와 협력하여 관리할 것입니다.
HII (NYSE: HII), le plus grand constructeur naval militaire d'Amérique, a obtenu un contrat d'une valeur de 9,6 millions AUD pour mettre en œuvre le programme pilote de Qualification des Fournisseurs de Sous-marins Australiens (AUSSQ) au cours des deux prochaines années. L'initiative vise à identifier et qualifier les fournisseurs australiens pour la base industrielle des sous-marins des États-Unis.
Le programme soutient le partenariat trilatéral de sécurité AUKUS entre l'Australie, le Royaume-Uni et les États-Unis, en se concentrant sur le développement d'une chaîne d'approvisionnement souveraine et intégrée internationalement pour les sous-marins à propulsion nucléaire. HII, qui dépense annuellement environ 1 milliard de dollars avec plus de 2 000 fournisseurs américains, mettra à profit ses 60 ans d'expérience dans la gestion de réseaux de fournisseurs complexes pour les programmes de sous-marins à propulsion nucléaire de la Marine américaine.
Le programme pilote AUSSQ, qui fait partie de la stratégie globale de l'industrie des sous-marins AUKUS de l'Australie, utilisera un modèle B2B permettant à HII Australie de travailler directement avec des entreprises australiennes. Le contrat comprend une option de prolongation basée sur les résultats obtenus et sera géré par les opérations australiennes de HII en partenariat avec H&B Defence, une coentreprise entre HII et Babcock.
HII (NYSE: HII), Amerikas größter Militärschiffbauer, hat einen Vertrag im Wert von 9,6 Millionen AUD gesichert, um das Pilotprogramm zur Qualifizierung australischer Unterwasserlieferanten (AUSSQ) in den nächsten zwei Jahren umzusetzen. Ziel der Initiative ist es, australische Lieferanten für die US-U-Boot-Industrie zu identifizieren und zu qualifizieren.
Das Programm unterstützt die trilaterale Sicherheitspartnerschaft AUKUS zwischen Australien, dem Vereinigten Königreich und den USA und konzentriert sich auf die Entwicklung einer souveränen und international integrierten Lieferkette für nuklearbetriebene U-Boote. HII, das jährlich etwa 1 Milliarde Dollar mit über 2.000 US-Lieferanten ausgibt, wird seine 60-jährige Erfahrung in der Verwaltung komplexer Lieferantennetzwerke für die Programme der US Navy für nuklearbetriebene U-Boote nutzen.
Das AUSSQ-Pilotprogramm, das Teil der umfassenden AUKUS-Strategie für die U-Boot-Industrie Australiens ist, wird ein B2B-Modell verwenden, das es HII Australien ermöglicht, direkt mit australischen Unternehmen zu arbeiten. Der Vertrag umfasst eine Verlängerungsoption basierend auf den erzielten Ergebnissen und wird von den australischen Betrieben von HII in Partnerschaft mit H&B Defence, einem Joint Venture von HII und Babcock, verwaltet.
- Secured new $9.6 million AUD contract with extension options
- Strategic expansion into Australian market through AUKUS partnership
- Leverages existing $1 billion annual supplier network expertise
- Potential for long-term revenue growth through international market expansion
- Initial contract value relatively small compared to HII's overall operations
Insights
The contract awarded to HII for the Australian Submarine Supplier Qualification (AUSSQ) pilot program represents a strategic positioning move with modest immediate financial impact but significant long-term potential. The initial
However, this agreement's true value lies in its strategic implications. By establishing early involvement in Australia's submarine industrial base development, HII secures a foothold in what will likely become a multi-decade, multi-billion dollar submarine program under the AUKUS partnership. The company already spends
This contract positions HII advantageously in three ways: 1) Establishing early influence in Australian submarine supply chain development; 2) Creating potential for significantly larger follow-on contracts as Australia's submarine program advances; and 3) Diversifying international revenue streams beyond traditional U.S. defense contracts.
While the immediate financial impact is minimal, this represents HII's strategic expansion into a new geographic market with substantial long-term defense spending commitments. The pilot program's performance will determine whether HII can capture a meaningful share of Australia's emerging submarine industrial base development.
This contract award marks a important development in the operationalization of the AUKUS security partnership. As the largest U.S. military shipbuilder with 60+ years of nuclear submarine expertise, HII brings unparalleled technical capability to Australia's nascent nuclear submarine program. The significance extends far beyond the modest
The AUSSQ pilot program addresses a critical challenge in nuclear submarine construction—establishing a qualified supplier network that meets the rigorous safety, quality, and security standards for nuclear propulsion systems. By leveraging HII's established qualification frameworks, Australia gains accelerated access to nuclear submarine industrial knowledge that would otherwise take decades to develop independently.
HII's involvement provides three key advantages to the AUKUS partnership: 1) Dramatically compressed timeline for Australian supplier qualification; 2) Seamless integration with existing U.S. submarine supply chains; and 3) Transfer of nuclear stewardship practices established through HII's work with the U.S. Department of Energy.
This represents a strategic win for HII in establishing early leadership in the Australian submarine market while strengthening U.S.-Australia defense industrial cooperation. The contract reinforces HII's position as not just a shipbuilder but a defense industrial base architect with exportable expertise in nuclear naval propulsion supply chain development.
Largest U.S. Shipbuilder Teams with Australian Submarine Agency to Qualify Suppliers
CANBERRA, Australia, March 11, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII), the largest military shipbuilder in the United States and a global leader in nuclear-powered submarine construction, was awarded a contract to deliver the new Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years to accelerate the identification and qualification of Australian suppliers and products into the United States submarine industrial base.
The contract’s initial value is
The pilot program will support the development of a sovereign robust, internationally integrated supply chain, accelerating Australian industry’s critical contribution to the success of the AUKUS trilateral security partnership between Australia, the United Kingdom, and the United States.
“This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines,” said Chris Kastner, president and CEO of HII. “HII has a long history of working with suppliers to ensure they meet the highest standards in safety, security, and performance. We welcome Australian partners to help build out this critical nuclear shipbuilding capability and ensure the long-term success of AUKUS.”
A photo accompanying this release is available at: http://hii.com/news/hii-to-strengthen-nuclear-powered-submarine-supply-chain/.
The HII led AUSSQ pilot program is part of the Australian Government’s comprehensive “AUKUS Submarine Industry Strategy,” released by the Australian Submarine Agency on March 5, 2025. The Industry Strategy “identifies the conditions to develop the sovereign industrial capability needed to deliver, operate and sustain our future conventionally-armed, nuclear-powered submarines, while also ensuring our existing Collins-class submarines are sustained and upgraded until their eventual withdrawal from service.”
The AUKUS Submarine Industry Strategy states, “The [AUSSQ Pilot program] will use a B2B model, enabling HII Australia to work directly with Australian businesses to qualify both the businesses and their products, and subsequently assist them to tender for supply into the US programs.”
“An Australian submarine industrial base capable of building and sustaining a persistent, potent and sovereign multi-class submarine capability is vital to the defense of Australia, and this Pilot initiative with HII Australia is another important step to this being achieved,” stated Richard Marles, deputy prime minister of Australia and Australia minister for Defence.
The AUSSQ pilot program will engage with Australian companies nationwide, building on the success of the recent partnership of HII Australia with both the South Australian Government and the Western Australian government, and complements the Australian government’s existing Defence Industry Vendor Qualification (DIVQ) Program.
With over 60 years of experience managing complex supplier networks for U.S. Navy nuclear-powered submarine programs and maintaining a strong nuclear stewardship culture for the U.S. Department of Energy (DOE) on critical national security projects, HII’s expertise in quality assurance, safety, and technical training will support Australian industry in meeting the stringent requirements for nuclear-powered submarine construction. The company also brings a record of advancing science, technology, and environmental protection, as well as proven performance in developing and sustaining a highly skilled nuclear workforce, including by investing in education and training programs that attract, develop, and retain top talent in local communities. By leveraging this extensive experience, HII is prepared to support Australia’s efforts to build and sustain a robust industrial base capable of supporting these highly sophisticated vessels.
Every year HII spends approximately
HII’s engagement will focus on assessing and developing Australian suppliers, providing technical guidance, and implementing best practices to ensure compliance with the precise specifications required for nuclear submarine components. By leveraging HII’s deep experience in supply chain management and industrial base expansion, the program aims to establish a sustainable pipeline of qualified suppliers, reinforcing the broader AUKUS effort. This contract works in conjunction with our Global Supply Chain Program’s broader Australian supplier initiatives.
The contract will be managed by HII’s Australian operations leveraging the company’s local and international strengths and skills delivered, and in partnership with H&B Defence – a HII and Babcock joint venture.
For more information about HII’s role in nuclear-powered shipbuilding and supplier development, visit https://hii.com/what-we-do/sectors/hii-australia.
About HII
HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.
As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:
- HII on the web: https://www.HII.com/
- HII on Facebook: https://www.facebook.com/TeamHII
- HII on X: https://www.twitter.com/WeAreHII
- HII on Instagram: https://www.instagram.com/WeAreHII
Contact:
Greg McCarthy
(202) 264-7126
gregory.j.mccarthy@hii-co.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/eb59ae74-c8ea-4a9f-81b9-8b51599a4999
FAQ
What is the value and duration of HII's Australian submarine supplier qualification contract?
How many suppliers does HII currently work with in its U.S. operations?
What is the main objective of HII's AUSSQ pilot program?
Who will manage HII's Australian submarine supplier qualification program?
