Major Defence company joins Global Supply Chain program

Minister for Defence Materiel Jason Clare today signed a Global Supply Chain Deed with multinational Defence company Northrop Grumman – the third largest Defence company in the United States.

The Deed is the first step in helping Australian companies access more opportunities through Northrop Grumman’s global supply chain.

“Northrop Grumman is a big addition to our Global Supply Chain program and I’m pleased they have come on board,” Mr Clare said.

“It is recognition of the strength of the Australian Defence industry and Northrop Grumman’s commitment to working with it.

“Australian small and medium businesses have a range of quality products and services. This Deed will help them get access to more work across the global supply chain of one of the world’s largest Defence companies.”

Five multi-national Defence companies have already taken the next step by signing Global Supply Chain agreements with the Australian Government – Boeing, Raytheon, Thales, Eurocopter and Lockheed Martin.

Through these agreements, the Government funds multi-national Defence companies to hire a team of people to identify and certify Australian companies as part of their global supply chains.

Global Supply Chain Agreements are designed to outline the way a multinational Defence company engages and facilitates opportunities for Australian industry to compete for work in their supply chains.

The Government has invested over $11 million in the program over the past three years.

“When the program was established everyone agreed that if it could provide a 10-fold return on the Government’s investment it would be a roaring success,” Mr Clare said.

“To date it has delivered more than a 30-fold return on investment with more than $356 million in contracts awarded to Australian industry.

“Australian SMEs have been the big winners, winning about 90 per cent of the value of these contracts.”

Media contact: Korena Flanagan – 02 6277 7620

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