DEFENCE SPECIAL REPORT WA defence sector aims to build on contract wins FEATURE Local businesses are already winning ongoing defence work as WA positions itself as a sustainment hub.

ORE than 210 Western managed interstate will pro- Naval Ship Management is The next big sustainment con- Australian companies vide opportunities for WA a joint venture between Bab- tract opportunities would be for Mare pursuing oppor- contractors. cock and UGL, and based in the Offshore Patrol Vessels, and tunities with French contractor They are the build of the Henderson, although most of then the Hunter Class frigates. Naval Group for its $50 billion Hunter Class Frigates, which will the Canberra Class work will “The sustainment of the Off- Attack Class submarine con- be assembled in Adelaide by BAE happen at the company’s Sydney shore Patrol Vessels is the next Matt Mckenzie struction program. Systems, and the Land 400 Vehi- operation. major program that is on the [email protected] Those businesses, Naval cle Combat System, which is to The business already has a big horizon,” Mr Smith said. @Matt_Mckenzie_ Group said, had either engaged be manufactured by Rheinmetall role as part of the Warship Asset “The Commonwealth will in expression of interest pro- Defence in Queensland. Management Alliance with BAE soon be looking for a sustain- Key takeaways cesses or requested information That’s on top of the one big Systems, the Commonwealth ment solution as they seek to on potential work. construction project that will government and SAAB Aus- prepare for transition from • WA businesses No WA suppliers have yet be undertaken in WA – the $2.8 tralia, which are responsible for acquisition, and as is the current positioning for been contracted, Business News billion Offshore Patrol Vessels. maintenance of the Navy’s eight trend I imagine that solution will opportunities in supply understands, with the federal Anzac Class frigates. require a number of organisa- Making waves chain for frigate, government and Naval Group WAMA won the circa $2 billion tions to collaborate. submarine builds having signed their strategic WA suppliers have won at least contract in 2016, with an initial “We’d certainly see that we partnership agreement earlier $3 billion of defence contracts so term of 6.5 years that will likely could add value to that solution, • Henderson precinct this year. far this financial year (see table, be extended until the end of life. and we’d be one of several naval in pole position for But the level of engagement page 22), adding to previously Most of that work is under- sustainment organisations who sustainment work indicates WA contractors are announced works packages. taken in Henderson. would have a long hard look at angling for a major role in the The biggest new contract was NSM general manager Joe that.” • $1.4 billion of onshore submarine build, even if the that signed by Naval Ship Man- Smith told Business News the He said sustainment oppor- naval investments final product is being assembled agement for the maintenance of company would be doubling its tunities for the Hunter Class in Adelaide. the Canberra Class landing heli- workforce to about 250, with frigates were still some distance likely or under way Two other major capital copter dock vessels, a 15-year, $1.5 most of the new recruits to be in away, with the first vessel to expenditure programs being billion arrangement. Sydney. enter service in the late 2020s. THE BIG BUILDS $bn

Naval Group (France) 50.0 Sea1000 submarines

BAE Systems (British) 35.0 Hunter Class Frigates

Rheinmetall (German) 5.2 Land 400 vehicle combat system

Lurssen & Civmec (German) 2.8 Offshore Patrol Vessels

Rheinmetall BOXER CRV for Land 400 Phase 2 trials at Puckapunyal, Victoria. Photo: Rhinemetall

Collins Class Submarine. Photo: ASC The big sustainment Anzac Class Frigates WAMA Consortium packages Hunter Class Frigates Not yet awarded Collins Class Submarines

Shortfin-Baracuda Submarines Not yet awarded

2 businessnews.com.au | June 17, 2019 FEATURE WA defence sector aims to build on contract wins

WA will be in a strong position BAE has about 500 staff on site Investment The state government will be to win the majority of this work, at its Henderson operation, with pitching for more investments at There are four notable ship- however. about 60 per cent trades and 40 the Australian Marine Complex $ building programs in the pipeline “Aside from the Collins Class per cent professional services, at Henderson, including $100 for Henderson. bn full cycle (mid-life) dockings, Mr Simmons said. million for the Ship Zero con- 1.5 The biggest is the Offshore CANBERRA CLASS Adelaide is not really set up as a The company acquired Anzac cept, which includes a systems Patrol Vessels, 10 of which will sustainment hub,” Mr Smith said. Class frigates builder Tenix program office and through-life SUSTAINMENT be built by Lurssen and Civmec “Typically, from a sustainment Defence in 2008. support facility. CONTRACT in a contract worth $2.8 billion, perspective, proximity to major “As part of (the maintenance Other moves might include starting from 2020. naval bases is key. contract) we have a major buying a bigger boatlift. compatible with Attack Class A hydrographic vessel for ocean “It just adds time and costs to upgrade to the project, the AMC general manager Jon- and Hunter Class vessels. research and two Huon Class Mine the Navy otherwise and is not Anzac midlife capability assur- athan Smith said the state “The vessels are getting bigger, Hunters are also to be built in WA. practical from a crew perspective. ance program, where we’re government office charged with they’re longer so they use more One program already well “Having the right network of doing a range of engineering supporting the local defence wharf space, they’re heavier so under way is the $335 million suppliers and infrastructure changes on the platform to industry, Defence West, was we need to have the lift capabil- Pacific Patrol Boat replacement is also important, and WA has make sure they’re still in ser- planning to make the facilities ity that can get those vessels out that, although needs to consider vice and capable for future program, where Austal is build- of the water,” he said. further investment, particularly deployments,” Mr Simmons ing 21 boats. Business News understands in relation to docking capability said. The federal government has Sydney is the only location in to accommodate the larger naval The vessels began service nearly $1.4 billion of onshore Australia that has equipment vessels.” from 1996, and are likely to con- naval investments likely or large enough to dock vessels BAE Systems general manager tinue for decades. under way, according to the such as the Canberra Class, (Henderson) Luke Simmons said “The Anzac Class will have to BNiQ Projects list. which one industry source sug- location was key for sustainment (operate until) 2045, so they’ll A $367 million expansion of gested is a sovereign risk issue. work. require further upgrades and HMAS Stirling Naval Base is “We have quite a large portion maintenance,” he said. ongoing, with Doric the main Opportunities of the fleet homeported here at “We’re not sure what that level contractor. One operation to have put on HMAS Stirling,” Mr Simmons of work is going to look like at the An additional $1 billion is significant new staff in recent told Business News. moment, but (we’ll ensure) we planned for Hunter Class and years is the federal government’s “That’s easy access, and strate- have the capability to continue Offshore Patrol Vessel training ASC. gically important we have them providing service to the Anzac centres, both to be at HMAS ASC is responsible for building here in WA.” Class.” Stirling. submarines in Adelaide, but a big

HOME: HMAS Anzac (left) and HMAS under maintenance work at Henderson. Photo: BAE Systems Australia FEATURE DEFENCE

AGILE: Eve Clark says L3 Ocenaia is taking on bigger competitors. Photo: Gabriel Oliveira

WA BUSINESSES & PROJECTS AWARDED IN 2019FY Building on ($10 MILLION PLUS) Business $m Service defence wins Naval Ship Management 1,500.0 Landing helicopter dock vessels Lockheed Martin & Calytrix Technologies* 533.0 JP9711 Simulation capability Phoenix International 388.0 Submarine rescue and support Kinetic IT 59.1 ICT service desk, 4 years We were less than 70 BMD Constructions 33.9 Airfields maintenance (including RAAF Pearce & Gingin) Risk Management Technologies Software, support for WHS Mangement, 5 years people at the beginning of last 33.5 Kinetic IT 32.3 Support services for integration management year, now we’re past 100 and Duratec Australia 31.8 Aviation refuelling vehicle facilities we’ll probably get to 120 shortly ASP Ship Management 22.2 Works package, HMAS Sirius Raytheon Australia (Henderson) 20.9 AWD combat system services & materials - Eve Clark Airflite 20.2 Fixed wing training aircraft chunk of ongoing work on the “Workforce skills that are One Tree Community Services 17.3 Defence childcare program, 7 years Collins Class is undertaken in utilised in the resources and oil Badge Constructions 17.2 Joint Health Command garrison upgrade Henderson, including mid-cycle and gas sectors are easily trans- Ertech 14.8 Shoalwater Bay training area repairs and intermediate dockings. ferable to shipbuilding and naval Duratec Australia HMAS Creswell college works ASC has grown its WA work- sustainment.” 13.3 force from 175 when it opened in He said there were about 100 Duratec Australia 12.4 HMAS Creswell mess works 2009 to more than 450 today. WA businesses in ASC’s supply Barpa Construction Services 10.3 RAAF Base Curtin fuel installation remediation General manager WA Craig chain, including Cape, Chandler Vandepeer told Business News Mcleod, Trojan and Evolution WA BUSINESSES & PROJECTS AWARDED IN 2019FY ASC had been able to lift staff Marine. (SELECTION OF OTHERS) numbers despite pressure during Another was Hoffman Engi- the resources boom. neering, which Mr Vandepeer L3 Oceania 3.7 Sustainment services - tactical satellite communications “Even during the resources said provided specialist measur- AccuWeigh 3.5 Scales boom, when trade skills were in ing and machining services. high demand, ASC West was able The federal government has Duratec 3.0 HMAS Stirling fuel works, and RAAF Curtin and Exmouth fuel works to achieve workforce growth floated the possibility of moving Acuweigh 1.9 Scales through offering competitive full cycle (mid-life) docking of L3 Oceania 1.8 Hardware spares wages, a modern work site and the Collins Class submarines Acor Consultants 1.4 Fuel supply chain technical panel professionally challenging, from Adelaide to Henderson, interesting work on one of Aus- with analysis to be delivered to Barpa Construction Services 1.3 RAAF Curtin building works tralia’s front-line defence assets,” the Department of Defence in L3 Oceania 1.1 Navigation radar Mr Vandepeer said. June. Source: Federal government tenders, BNiQ | *Calytrix Technologies is Perth based. DEFENCE FEATURE

FLYING HIGH: Kristian Constantinides (left) and Airflite defence program manager Steven Murphy. Photo: Gabriel Oliveira

That shift could happen as recognised that we can do the Aerial route early as 2022, and bring about 700 integration similar to the big As a general rule of jobs to the state. players, we’re starting to move Perth -based Airflite A second business that has into bigger scope programs,” she inked two new contracts in the thumb, 70 per cent of the value been hiring is Fremantle-based said. past 18 months as it transitions L3 Oceania, which is a subsidiary “It’s things like on the Offshore from a long-term role serving the of US company L3 Technologies. Patrol Vessels; our scope nor- Royal Australian Air Force’s Pila- is in sustainment - Kristian Constantinides L3 Oceania general manager mally would be to provide just the tus PC9 pilot training aircraft. Eve Clark said there were huge electronic charting system, that’s General manager Kristian Con- the program,” he said. A second contract was to man- growth opportunities that had something we provide across the stantinides told Business News “As a general rule of thumb, ufacture hydraulic rigs in support supported an expansion for the whole Navy fleet. the company, which is owned by 70 per cent of the value is in of the Navy’s MH-60R Seahawk business. “What we’ve just gotten into is three families, had worked on sustainment.” ‘Romeo’ helicopters. “We were less than 70 people at to provide the (integrated) navy maintenance of the planes for 25 Nonetheless, Airflite has a The rigs provide a portable the beginning of last year, now bridge … there’s a lot of other years, but the aircraft were being range of ongoing defence jobs power source for aircraft hydrau- we’re past 100 and we’ll probably equipment.” retired by March 2020. and commercial work for its 250 lics servicing. get to 120 shortly,” Ms Clark told Ms Clark said L3 Oceania had The replacement planes were employees. Mr Constantinides said Business News. also broadened beyond Navy contracted on an acquisition and The company’s latest deal was Airflite would be exploring About 85 of those staff were in work. sustainment model, Mr Constan- to lease 12 planes to the Air Force export opportunities for the WA. “We’ve expanded into Army tinides said. to support a cadet engagement hydraulic rigs, and partnering Part of the reason was the huge (work), and now we’re trying to “What that does is it puts the program, with four already on with Sydney-based Tysci capital spending program under get into aerospace and space as power in the hands of the manu- tarmac. Technologies. way. well,” she said. facturers, and the manufacturers BAE Systems “The other part of it is, as we’re “A lot of the processes and rules have evolved to recognise that SEARCH getting bigger and more estab- aren’t that much different across the value of selling an asset is There are 61 results from our index of 98,948 articles, lished in this defence area and Defence.” only 30 per cent of the value of 9,812 companies and 36,071 people FEATURE DEFENCE Blacktree broadcasts from Belmont to Britain and places in between A Belmont-based business is connecting military installations around Australia and across the world.

Matt Mckenzie “There are about 16 sites in Aus- [email protected] tralia that have Spirit River or @Matt_Mckenzie_ Blacktree equipment installed. BLACKTREE Technology appears “It’s also been exported to sev- to have made an astute call when it eral countries.” bought communications specialist The work is done locally, with Spirit River in 2015. five employees and six regular That acquisition by Bel- contractors at Blacktree. mont-based Blacktree shifted its In addition, there are about focus to the defence sector, for 20 local businesses in the supply which it now produces world-lead- chain for Blacktree, Ms Nevin said. ing bespoke technology. That included Benchmark Engi- neering in Malaga for machining work, and Action Laser Cutting in It’s a Bayswater. “It’s made from ground up, we world-leading work from essentially the raw HIGH FREQUENCY: Joel Nevin says Blacktree makes its equipment locally. Photo: Gabriel Oliveira bespoke metal,” she said. “It’s all made in Australia, made product, we’re in Perth predominantly. “While it’s going to those coun- not competing “(The metal) gets machine fabri- tries ... it’s linked to NATO comms cated, welded, coated in some way platforms.” $ necessarily with and then assembled and tested She said having a vertically inte- here. grated product was an advantage. 83,000 anyone - Joel Nevin “That’s our bread and butter.” “It’s a world-leading bespoke CDIC GRANT WON BY BLACKTREE Ms Nevin said sustaining the product, we’re not competing nec- The family business manufac- equipment was also a source of essarily with anyone,” Ms Nevin Capability grants Industry, Innovation and Science tures antennas and communications work. said. into the grant system every year. equipment in its warehouse. According to the federal govern- A handful of other WA busi- Blacktree was one of 15 local WA businesses have secured Blacktree director Joel Nevin ment’s tenders website, Blacktree nesses have worked in the businesses to win capability grants $1.2 million of grants in the past told Business News the business, has won 21 contracts in the past communications space for the from the federal government’s 18 months. which launched in 2002, produced three years. defence industry. Centre for Defence Industry Capa- The biggest winner was Matrix ultra-high-frequency satellite The biggest was about $530,000 One is Bayswater-based Bush- bility in the past two years, scoring Composites & Engineering (see communications antennas and for support to channel control comm HF Antenna Systems, an $83,000 commitment. page 30), with four grants worth radio frequency systems, which sites for the 12 months to Decem- which manufactures high-fre- The cash is allocated to busi- $256,000. are collocated on defence bases. ber 2019. quency antennas. nesses that are implementing Yangebup-based Nexxis, which “We manufacture a range of Two recent wins included Among those groups with which recommendations from an supplies drones and robotic crawl- UHF Satcom equipment, which $441,000 in April for electronic it has worked are the US National adviser, such as mentoring, market ers with cameras for inspections essentially operate from the manufacturing machinery and Guard, the United Nations in intelligence or improving financial during maintenance, won three back of the radio to the tip of the equipment and accessories, and Africa and Asia, and the US’s Iraq management systems, to make grants worth $161,000, while Hen- antenna,” Ms Nevin said. $273,000 in May for construc- deployment. their businesses ready for defence derson-based safety accreditation “We’ll make a large three-metre tion and maintenance support Lower frequency antennas are work. provider Wiltrading Stace secured antenna, we make the pedestal equipment. usually used for long--distance Businesses need to match the $154,000 worth of grants. that they stand on, we make signal Blacktree also has a history of communications, while the high- amount of the grant. All three are businesses that enhancing, signal improving equip- shipping overseas. est frequency systems are used for About $3 million is allocated had previously focused on oil and ment that sits in line from the radio. “Recently we did our largest line-of-sight signals. through the Department of gas contracting. “That’s used significantly by the ever export to the UK,” Ms Nevin Unidata, which specialises in . Spirit said. environmental modelling and sat- Matrix Composites & Engineering River and Blacktree ended up “Spirit River equipment has ellite telemetry, is also understood SEARCH manufacturing equipment for all been exported to the US, Germany, to have previously undertaken There are 76 results from our index of 98,948 articles, of the control stations in Australia. Italy and Japan. defence-related work. 9,812 companies and 36,071 people DEFENCE FEATURE

CUTTING EDGE: Acoustic damping material from Matrix could be used in new submarines, Aaron Begley says. Photos: Luke Carter Wilton Matrix the one for neo-materials Defence work is providing opportunities for businesses with oil and gas prowess such as Matrix Composites & Engineering.

Matt Mckenzie a number of opportunities in “It doesn’t transmit any energy [email protected] defence. to what it’s protecting.” Being on the radar of the prime @Matt_Mckenzie_ “There’s opportunity for us on Mr Begley said his team had IMPROVING the stealth capabil- the frigates that are being built made the decision to diversify ity of Australian submarines is in Adelaide, the existing fleet of the 20-year-old ASX-listed busi- contractors that way really does open one big goal for Henderson-based submarines and the new subma- ness beyond oil and gas about Matrix Composites & Engineer- rines,” Mr Begley said. four years ago. up channels to market - Aaron Begley ing, which is broadening its The existing Collins Class sub- “With the industry downturn it focus from offshore energy into marines have been in operation was pretty clear we had to diver- “Most of our income is derived transition into defence and partly defence. for around two decades. sify,” he said from export sales; we export all to build industrial capability Matrix was an industry partner Their replacement, the Attack “We looked at adjacent around the world – to the US, up more generally. with British business Qinetiq and Class vessels, (also known as the industries that could use our into South Korea, Europe, South- “There’s a very cyclical defence local universities awarded a $1.5 Shortfin Barracuda) are currently technology, manufacturing pro- East Asia, Brazil.” spend,” he said. million grant in March to develop in the design phase. cesses and skills. Those deals have included “It’s probably very different in stealth materials that will make The Attack Class vessels will be “The maritime defence sector defence contracts. sustainment, that’s where you submarines harder to detect. built by Naval Group, with which fits pretty well because the type “We’ve probably produced can be a bit more defence focused. Quieter submarines improve Matrix is in early discussions. of work we did historically was close to $1 billion of export reve- “But when you’re looking at both survivability and opera- Mr Begley said hull coating maritime oil and gas, subsea nue (over the company’s life),” Mr getting involved in capital spend, tional effectiveness. materials with acoustic damp- equipment in particular. Begley said. they tend to like companies like The cash was from the Next ing properties was one example “Those skills are definitely “We’re globally competitive ours who do things other than Generation Technologies Fund of what Matrix was working on, transferable to the defence space.” with what we do … that opens up purely defence work.” the federal government estab- while other options were buoyant Matrix has downsized its work- opportunities for us. lished in 2016, which will allocate materials and structural work. force during its transition, with “Being on the radar of the Endeavouring $730 million over a decade on Structural work could include current staff of 150, less than half prime contractors that way really Matrix isn’t the only oil and innovation in areas such as quan- carbon fibre or reinforced glass the peak level. does open up channels to market.” gas business shifting towards tum science and autonomous fibre for the hulls of submarines. As with many businesses defence. systems. Matrix has also developed a undertaking to win defence con- Support Perhaps the most notable Previous Western Austral- material called kinetica, used to tracts, Mr Begley said there was a One further boost for the com- example is Civmec, which bought ian funding recipients have absorb energy. process to be navigated to demon- pany was through the federal east coast shipbuilder Forgacs included the University of West- It is designed to crush under strate capability. government’s capability improve- Marine and Defence and built an ern Australia’s Microelectronics impact, to protect structures such But he was confident Matrix ment grants (see page 26), from $80 million facility in Henderson Research Group, which attracted as crash barriers or blast walls. had the right credentials. which it received four amounts as part of the shift. $2.9 million in funding for work “If you can imagine a deto- “In terms of capacity, we’re totalling $256,000. Civmec was richly rewarded, countering improvised threats. nation … that kinetic energy is the largest composite materials Mr Begley said the govern- winning a share of the $2.8 bil- Matrix chief executive Aaron absorbed by the kinetica mate- company in Australia,” Mr Begley ment’s thinking behind the grants lion Offshore Patrol Vessel build Begley said the company had rial,” Mr Begley said. said. was partly to support businesses led by Luerssen. FEATURE DEFENCE Local defence ecosystem grows business A strong network has developed in WA to help local businesses gain access to defence contracts across the country.

LEADERSHIP: Linda Reynolds speaking at last year’s IndoPacific Defence Conference. Photo: Immer Photography

Matt Mckenzie Stephen Smith, was defence min- contractors include the Cham- [email protected] ister from 2010 to 2013. ber of Commerce and Industry @Matt_Mckenzie_ When they understand that Whilst WA has not picked up as of WA, Australian Industry achieved much work as some had hoped, Defence Network WA branch, two minor records when Sena- in that time an ecosystem has Defence West, and the Hender- we have, by tonnage, the largest tor Linda Reynolds was named developed to support local busi- son Alliance. defence minister and Melissa nesses aiming for more. In addition, there will be at shipbuilder in Australia, they’re just Price chosen as minister for Senator Reynolds, in par- least two major conferences defence industry. ticular, has been a passionate to connect prime contractors, shocked - Gordon Flake The pair of appointments advocate of WA companies get- smaller businesses and high level means the nation’s two most ting a go in defence, and has names in defence this year. in November, with a more tech- or four decades in giving the state senior defence portfolios will be been widely credited for her role One is Perth USAsia Centre nical focus. a bigger role in national defence held by WA politicians. in the selection of Henderson as and Defence West’s IndoPacific thinking. It also means that three of the Australia’s second major ship- Defence Conference 2019, which Indo-Pacific positioning Many significant ideas had six most recent national defence building hub. is in its second year. Perth USAsia Centre chief exec- been led out of Perth, including ministers have been representa- The creation of a state defence It takes a broad strategic utive Gordon Flake said Perth the concept of the Indo-Pacific tives of the state. issues portfolio in 2017, held by approach to defence issues. was effectively Australia’s Indian region, he said. Prior to Ms Reynolds, former Paul Papalia, has also played a The Submarine Institute Ocean capital. “Kim Beazley (defence minister senator David Johnston held part. of Australia’s Submarine Professor Flake said WA’s polit- from 1984 to 1990) was responsi- the role for 15 months until 2015, Organisations that play a role Science, Technology and Engi- ical representatives had been ble was responsible for dragging while former member for Perth, in the ecosystem supporting neering Conference will be held very successful in the past three the Australian defence forces to DEFENCE FEATURE

DRIVING: Paul Papalia is leading the state govern- CONNECTIONS: Darryl Hockey says the Henderson Alliance ment’s defence industry endeavours. wants to help local businesses link into supply chains. Photo: Gabriel Oliveira Photo: Attila Csaszar

“Australians east of the Nullar- “Over the lifetime of a pro- bor are just shocked when they gram, the value is much more in hear we have factories out here. maintenance and servicing than As much as half of that will “When they understand that it is in the actual build, in terms we have, by tonnage, the largest of ongoing jobs. need to be conducted interstate shipbuilder in Australia, they’re “That ties to our geography, just shocked.” if (submarines are) operating in because SA simply just does Prime contractors would also this theatre, it’ll take an extra be involved. five days to steam round to SA.” not have the capabilities and Professor Flake said one For the Submarine Institute, it intended outcome from the will be the first time the organ- capacity to be able to deliver LEADERSHIP: Linda Reynolds speaking at last year’s IndoPacific Defence Conference. Photo: Immer Photography conference was that it would isation’s technology conference help small businesses better is hosted in Perth, institute sec- understand the needs of prime retary Frank Owen told Business those programs - Darryl Hockey recognise that we had to have contractors and governments. News, having previously held a a two-oceans strategy, that we “This is part of an effort to do politics and strategy conference and France, in addition to local not yet under way in WA, the couldn’t just defend the Tasman more,” he said. here. Up to 400 delegates are leaders. alliance was active in getting Sea,” Professor Flake said. Although much of the atten- expected. Some of the more technical members to become involved “When he pushed for, and was tion has been on where ships “We recognise that there’s a topics to be covered will include in the supply chains of prime successful in the establishment would be built, Professor Flake need to extend it out beyond signal processing, hydrodynam- contractors. of, Fleet Base West, that was argued WA would be a big winner where they build the subs, ics, integration of unmanned “That process is happening last really the start of Australia even in sustainment and maintenance towards where the subs are vehicles, pump jet propulsion year, this year and next year even thinking about the Indo-Pacific.” work. maintained and sustained as and stealth technology. before any ships are being built,” Professor Flake told Business “The South Australian (ship- well,” Mr Owen said. he said. News the centre’s conference building) capacity is much more “There’s an opportunity for Strong support “The big companies need to would include speakers from of an industrial policy, it’s a the offshore oil and gas indus- The Henderson Alliance is one do due diligence on the SMEs to businesses such as Boeing and normative national decision to try to look at diversifying … and part of the defence ecosystem, make sure they’ve got the requi- representatives of military across create jobs in (that state),” he potentially for some defence with a focus on small and medi- site skills to be able to perform, to the Indo-Pacific, including Japan, said. companies that might not be um-sized enterprises. make sure they have their cyber- the US and India. “Our relative proximity to the operating in the offshore space. It was created two years ago security in place.” “The intent is to build an ongo- region, and deep resource ties “The whole idea is to see what and now has more than 100 mem- Some members have already ing forum here in WA that changes give us an opportunity to ... build synergies can be made between bers, according to co-founder had success, but it was difficult the way Australia thinks about much more for the future. the two environments.” Darryl Hockey. trying to become integrated in our role and introduces our state “Maintenance and ongoing ser- He said he expected senior Mr Hockey said although national supply chains from WA, and city to the region,” he said. vicing is going to be in WA, not SA. representatives from the US major naval construction was Mr Hockey said. FEATURE DEFENCE

WORKFORCE: Austal is taking steps to bring more women into its business. Photo: Gabriel Oliveira Local defence ecosystem grows business

“The main bulk of opportu- work alongside small business, Gates, who was a rear in nity would be to contribute and really target this opportunity the Navy. The whole idea is to to the naval construction pro- to be involved in construction Also in June, the state gov- grams that are going to be programs in the east.” ernment said it would establish see what synergies can occurring in SA, where there’s The state government’s advo- a Defence Science Centre, with about $85 billion worth of cacy of the industry is led by the about $230,000 announced for be made between the two work,” he said. Office of Defence West, which an internship program in part- “As much as half of that will was established in 2017. nership with the Australian environments - Frank Owens need to be conducted interstate Matt Moran, who was an Mathematical Sciences Institute. because SA simply just does not adviser to former defence min- The program will support 10 “Some companies came in from The peak requirements for have the capabilities and capac- ister Christopher Pyne, has PhD students to work on small overseas, set up an ABN or a post some roles won’t be until 2027, ity to be able to deliver those recently been tapped as execu- business defence innovation box, became ‘local’ and entered however, he said. programs. tive director. projects. into the supply chain. In late May, Edith Cowan Uni- “While the vessels will be The government earmarked “We’re trying to prevent things versity and South Metropolitan (assembled) in Adelaide ... ser- about $3 million in its recent National cause like that.” Tafe announced a partnership vices, technology, parts and budget for the office. Mr Hockey said the Hender- with the federal government’s componentry will be transferred Defence West declined an son Alliance would be working Workforce development Naval Shipbuilding College, over.” interview for this feature, but a as part of a bigger national coa- One strong theme that which aimed to create clearer The alliance was working with spokesperson said the office had lition of industry bodies – the emerged talking to defence con- pathways for students into the state government to improve hosted local companies on stands Australian Defence Alliance – to tracting leaders is that there is shipbuilding. representation of local busi- at expos. lobby the federal government on not yet a skills shortage forming The state government opened nesses looking east. The office has also developed big issues. in the industry. a new Tafe shipbuilding training “A lot of the eastern states gov- the Defence Industries Strategic One such battle was ensur- But that doesn’t mean there facility at Naval Base in May. ernments are working strongly Plan, the spokesperson said. ing that content rules were not has not been thought given to That followed an investment with their small business sector Earlier this month, the gov- manipulated. preventing such an outcome. of $2.4 million. in assisting them in entering the ernment also announced a “(We need to) make sure that Henderson Alliance’s Mr Henderson shipbuilder Austal supply chain; we’re actively work- Defence Advisory Forum, which big overseas companies can’t cir- Hockey said there was already has also had a big focus on ing with the state government to will give guidance on issues cumvent the spirit of developing planning ongoing to make sure training, including hiring a wom- encourage it to do likewise,” Mr such as infrastructure and skills an Australian sovereign indus- the state’s workforce would be en-only apprenticeship class this Hockey said requirements. try,” he said. properly prepared with skills year as part of a bigger plan to “We really want it (the state The forum will be chaired by “In the mining industry, they needed for future shipbuilding boost female participation in the government) to take the lead, to WA Defence Advocate Raydon had local content requirement. work. workforce. DEFENCE SPECIAL REPORT

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Single Fin drives solid quarter for Gage Roads Brewing Who will champion WA in Canberra? Curtin’s French defence connection 03 May 2019 by Peter Kennedy 28 Mar 2019 by Delia Price been the governor, Kim Beazley. As defence minister he oversaw the Hawke Tele Tan says WA is punching above its weight in the defence research realm. government’s expansion of ... HMAS Stirling, which has been accompanied by Photo: Gabriel ... the development of a very successful defence oriented ship ... building and maintenance operation. Before the development, south of Fremantle, about Macquarie demands Panoramic raise $19m the only defence ... 06 Mar 2019 by Adrian Rauso Tempo board exodus continues as MD quits systems. Defence Issues Minister Paul Papalia said the announcement showcased one of the many highly ... skilled and capable companies in 29 Apr 2019 by Adrian Rauso the state’s defence industry. “It also aligns with the Western ... Australian park-and-ride facilities in Melbourne. Mr Morrison said the Australian Defence and Defence Industries Strategic Plan, launched by the premier last Defence Force would continue to receive ... South Australia won most of the year, which outlined ... big defence shipbuilding contracts awarded by the federal government ... crucial to Australia’s defence capability.” The $1 billion commitment will see Phoenix wins $388m Navy contract the replacement of the ... 06 Mar 2019 by Business News Navy’s submarine rescue systems. Defence Issues Minister Paul Papalia said the announcement showcased one ... of the many highly skilled and capable companies in the state’s defence industry. “It also ... aligns with the Western Australian Defence and Defence Industries Strategic Plan, launched by the premier ... businessnews.com.au