Minister for Defence Materiel – More opportunities for Australian Defence companies – Government and Northrop Grumman sign global supply chain agreement

Minister for Defence Materiel Jason Clare today announced the Federal Government would set up a team to help Australian companies access the global supply chain of one of the world’s largest defence companies – Northrop Grumman.

The team will identify and certify Australian companies to participate in Northrop Grumman’s global supply chain. 

Mr Clare and Chief Executive Officer of Northrop Grumman, Mr Wes Bush, today witnessed the signing of an annex under a Global Supply Chain Deed, which will fund the team.

In June this year Mr Clare and Northrop Grumman signed a Global Supply Chain Deed. 

Global Supply Chain Deeds are the first step towards establishing one of these teams. It sets up the relationship between a company and Defence and outlines the way they will work together to look for opportunities for Australian industry.

The signing of the annex is the next step. It triggers Government funding to establish a team embedded in the company which will: 

  • ·        Actively look through Northrop Grumman’s global supply chain activities and identify opportunities for Australian industry;
  • ·        Look for Australian companies who have the potential to be suppliers to Northrop Grumman; and
  • ·        Provide training to Australian companies on how to work with Northrop Grumman and be internationally competitive.

Northrop Grumman is one of four companies that have now signed annexes and set up teams to help Australian companies to identify opportunities within their global supply chains.  

The others are Boeing, Raytheon and Thales.

Three other companies have signed Global Supply Chain Deeds. They are Lockheed Martin, Eurocopter and BAE Systems plc. 

Mr Clare said the Government has so far invested more than $11 million in the Global Supply Chain 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 almost a 40-fold return on investment so far with more than $392 million in contracts awarded to Australian industry.

“Australian Small to Medium Enterprises have been the big winners, winning about 90 per cent of the value of these contracts.”

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Media contact: Korena Flanagan – 02 6277 7620


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