Local defence manufacturing industry receives funding boost

More than $17 million has been allocated to 44 Australian businesses in the latest rounds of the Defence Industry Development Grants (DIDG) program.

This new round brings the current total grant allocation to more than $51 million awarded through the program to date across four delivery streams: Exports, Skilling, Security and Sovereign Industrial Priorities.

The DIDG program represents a total investment of $170 million. This demonstrates Australia’s commitment to expanding and modernising our sovereign defence industrial base - a key priority of the Defence Industry Development Strategy and National Defence Strategy.

Through the program, defence industry businesses across the country will expand export opportunities and improve global competitiveness. They will strengthen cyber, physical and personnel security to meet Defence standards and deliver technical training to grow Australia’s skilled defence workforce.  

This latest round of grants will also continue to drive investment in advanced manufacturing; aligned with sovereign defence priorities such as submarines, aerospace, guided weapons, explosive ordnance and advanced technologies.

The grants include eight projects funded by the Australian Submarine Agency, totalling $2.9 million; to support the AUKUS nuclear-powered submarine program. This will help build a strong, sovereign submarine enterprise, critical for Australia’s National Defence in the decades to come.

The DIDG program continues to provide matching grants of up to 50 per cent to eligible Australian defence suppliers, with applications open year-round until 2028.

For more information visit: Defence Industry Development Grants Program | Business & Industry | Defence

Quotes attributable to Minister for Defence Industry, the Hon Pat Conroy MP:

“We’re backing Australian businesses, Australian workers and Australian innovation to deliver the capabilities the Australian Defence Force (ADF) needs.

“These new grants will help local companies scale up, modernise and grow, ensuring our nation has the industrial strength and skills base to meet future challenges.

“Every one of these projects contributes to a stronger, more resilient and sovereign defence industry – creating jobs, driving innovation, and building a future made in Australia.”

The latest grant recipients (by stream) include: 

Sovereign Industrial Priorities Stream

·        Australian Textile Group (Vic) will receive $1,000,000 to acquire a high-performance stenter for precision textile finishing of fabrics used in ADF combat uniforms and personal protective equipment.

·        Catten Industries (Vic) will receive $1,000,000 to procure automated laser cutting machine and fibre laser welding systems to enhance the supply into armoured vehicle and naval defence programs, particularly the Boxer Combat Reconnaissance Vehicle and components for naval valve systems to be delivered under the AUKUS program.

·        DVR Engineering (Vic) will receive $1,000,000 to procure a 5-axis computer numerical control (CNC) machining centre to enhance the supply into AS9 Huntsman SPH and AS21 Redback IFV vehicles.

·        Franmarine (WA) will receive $1,000,000 to commission a mobile underwater sustainment system to enable critical underwater submarine maintenance and sustainment.

·        GPC Electronics (NSW) will receive $1,000,000 to acquire an electronic component testing capability to support the production of printed circuit assemblies (PCAs) for the Evolved Sea Sparrow Missile program and other Guided Weapons and Explosive Ordnance (GWEO) subassembly supply chains.

·        Prestige Precision Tools (Qld) will receive $1,000,000 to establish the manufacturing capability for high-precision carbide tooling inserts, delivering tooling solutions that meet the stringent requirements of platforms such as the Joint Strike Fighter and other advanced weapons systems.

·        Van Munster Boats (NSW) will receive $969,084 to procure specialised composites manufacturing equipment to support the production of Bluebottle uncrewed surface vessels for autonomous maritime surveillance. 

·        Rivierra (Vic) will receive $998,568 to procure a CNC vertical machining centre and a multitasking CNC lathe to enhance the manufacture of entrenching tools.

·        Rosebank Engineering (Vic) will receive $781,739 to establish a state-of-the-art cold spray facility supported by advanced robotic control and precision part manipulation to support surface and sub-surface vessels and future AUKUS class submarines.

·        Levett Engineering (SA) will receive $766,551 to procure a 5-axis CNC machine to enhance the fabrication of complex aluminium components for guided weapons, explosive ordnance and munitions.

·        Stella Engineering (NSW) will receive $650,158 to acquire capital equipment to commission advanced anodising capability for multiple high-value suppliers within the defence sector.

·        Airspeed (SA) will receive $599,118 to procure a 5-axis CNC machine to enhance manufacturing processes and achieve a higher production rate for the skirts of carbon fibre solid rocket motor cases in support of the GWEO program. 

·        Benelec (NSW) will receive $503,222 to establish an RF antenna testing laboratory to enable development and verification of advanced mesh radio systems, uncrewed systems, counter-uncrewed systems, and electronic warfare antennas. 

·        Alsop Engineering (NSW) will receive $502,774 to procure a CNC turning centre and a 5-axis vertical machining centre to increase production capacity, precision, and supply chain responsiveness across key Defence programs, particularly Ghost Shark and the Young Endeavour reconstruction. 

·        Advanced Navigation (NSW) will receive $499,129 to acquire and integrate a new dual-axis inertial sensor calibration system to enable next-generation Defence solutions for long range autonomous navigation platforms and precision guided munitions. 

·        Australian Steel (Vic) will receive $472,449 to procure a CNC cutting machine and robotic handling systems to enhance the manufacturing capability of critical specialised steels for multiple platforms, principally the Boxer Combat Reconnaissance Vehicle the Hunter class frigate. 

·        MCHND (SA) will receive $400,000 to procure a CNC 5-axis machine to enhance the manufacturing of faceplates for Redback Infantry Fighting Vehicles and components for Defence’s passive radar systems. 

·        Craig International Ballistic (Qld) will receive $263,663 to acquire an automated polyurea coating system for defence armour and vehicle protection, and for future applications in the naval and land ballistic composite panel manufacture. 

·        Applied Measurements Australia (Vic) will receive $250,196 to procure a laser welding table and testing and calibration instrumentation for the manufacture of pressure transducers to support the Collins Class life of type extension and future AUKUS submarines.

·        Global Welding Technologies Group (SA) will receive $226,471 to establish an advanced welding manufacturing and training centre designed for industrial-grade manual and robotic welding applications, to support shipbuilding capabilities including the Hunter-class frigates and future AUKUS submarines.

·        Jack Thompson Engineering (Vic) will receive $154,841 to procure a coordinate-measuring machine and supporting equipment to establish a precision quality assurance and certifying capability of steel plate for the AUKUS program.

·        Ballistic and Mechanical Testing (Vic) will receive $50,519 to acquire and commission an advanced optical system to enhance its ballistic testing capabilities for armour solutions.

Exports stream

·        Cowan Manufacturing (NSW) will receive $250,000 to procure a fiber laser cutter to modernise the manufacture of recompression chambers used in diving and undersea operations.

·        HTA (Vic) will receive $250,000 to acquire and install a drop-bottom furnace to support heat treatment processes for land, air, and sea components that must meet stringent defence and aerospace standards.

·        Levett Engineering (SA) will receive $250,000 to procure a DMC75 monoBLOCK 3 pallet milling machine to manufacture precision components for export opportunities to the US and UK in several defence capability areas including the SSN AUKUS nuclear powered submarine program and repair and overhaul of components for the F-35 Joint Strike Fighter.

·        Nu Metric Manufacturing (SA) will receive $250,000 to acquire precision assembly equipment, including collaborative robotics and a high-precision portable measuring arm equipped with a laser scanner, for the assembly, automated inspection, and validation of aircraft components.

·        Thrust Maritime (Vic) will receive $167,831 to procure a 32 tonne gantry crane for manufacturing operations that involve the fabrication, assembly and testing of heavy components and systems used in submarine rescue and subsea infrastructure operations. 

·        Defendtex Research Labs (Vic) will receive $135,503 to acquire a selective laser sintering 3D printer for prototyping and producing military grade components used in autonomous vehicles, guided weapons and explosive ordnance munitions deployed by allied defence forces.

Skilling stream 

·        Quality Maritime Surveyors (SA) will receive $239,404 to upskill workforce in non-destructive testing to support critical requirements in submarine and ship sustainment activities.

·        Eptec Marine (NSW) will receive $140,600 to upskill its technicians in industrial coating application and inspection in line with defence standards recently adopted by US. 

·        Rosebank Engineering (Vic) will receive $67,891 to upskill its workforce in non-destructive testing, CAD/CAM programming, robotics, quality assurance, materials technology, explosives handling, IT proficiency.

·        Ocius Technology (NSW) will receive $48,667 to upskill technicians in systems engineering and maritime autonomy to sustain the Bluebottle uncrewed surface vehicle capability.

·        K39 Consulting (Qld) will receive $24,601 to upskill its workforce in specialist areas of explosive ordnance safety, sustainment logistics, and defence project delivery. 

·        Asset Reliability Inspections (WA) will receive $22,920 to develop its workforce in high-quality inspection services to support critical defence infrastructure. 

·        International Centre for Complex Project Management (ACT) will receive $22,896 to deliver a complex project leadership training course for Australian defence businesses.

·        Fusion Engineering Consulting Services (Vic) will receive $20,767 to enhance competencies of its technicians in the acceptance of printed boards, cables and harness assemblies.

·        C4I (Vic) will receive $5,845 to enhance critical workforce skills, ensuring voice communication solutions meet the evolving needs, operational environment, and mission requirements of the ADF.

·        JVAT Solutions (Vic) will receive $5,498 to develop key staff on systems engineering, hypersonic flight vehicle design, performance analysis and professional project management.

·        Shoal Group (SA) will receive $5,139 to develop workforce capability in formal project management, strengthening business performance and ensuring alignment with Sovereign Defence Industrial Priorities.

Security stream 

·        Luminact (Vic) will receive $100,000 to uplift cybersecurity controls and enhance physical security to meet Defence security requirements.

·        Secure State Consultants (SA) will receive $100,000 to uplift cybersecurity controls to meet Defence security requirements. 

·        Stahl Metal (Vic) will receive $73,700 to uplift governance, physical and cybersecurity posture to meet Defence security requirements.

·        Danger Solutions (NSW) will receive $51,178 to uplift cybersecurity controls and enhance physical security to meet Defence security requirements.

·        Falcon (Vic) will receive $20,840 to uplift governance, physical and personnel security posture to meet Defence security requirements.