Northrop Grumman and VEEM Limited sign Manufacturing Licence Agreement to strengthen defence manufacturing capability in Western Australia and embed into a global supply chain.
From left: Rob Denney (Australia Country Executive, Northrop Grumman), Trevor Raman (CEO VEEM Ltd), Paul Papalia (WA Defence Industries Minister), Frank Morley (VP APAC, Northrop Grumman), Dave Johnson (Commercial Manager, VEEM Ltd), Mitch Butta (Senior Corp Director, International Industrial Engagement, Northrop Grumman), Nick Warwick (Defence & Nuclear Sales Manager at Flowserve Corporation)
Northrop Grumman Corporation (“Northrop Grumman”) and VEEM Limited (ASX: VEE) celebrate the signing of a nine-year Manufacturing Licence Agreement (MLA) at the 2025 IndoPacific International Maritime Exhibition in Sydney, that will enable VEEM to manufacture precision-engineered components for Northrop Grumman’s major defence programmes. This partnership further deepens Australia’s integration into global defence supply chains and supports the strategic growth of sovereign manufacturing capability in Western Australia.
Under the agreement, VEEM will receive technical data and advanced manufacturing know-how from Northrop Grumman, and will be eligible to respond to Requests for Quote (RFQs) for the manufacture of pre-determined components. The MLA establishes a long-term framework, enabling VEEM to compete across multiple programme phases and embed Australian production into Northrop Grumman’s global supply chain.
Rob Denney, Country Executive for Australia, Northrop Grumman says on the MLA, “We’re excited to take the next step in integrating VEEM into Northrop Grumman’s global supply chain. This MLA reflects advanced capabilities with Western Australia’s defence industry and our commitment to strengthening Australia’s defence submarine industrial base and supply chain resilience. We’re pleased to highlight this collaboration during Indo Pacific, alongside other key developments in Australia’s submarine capability”
For Northrop Grumman, the agreement represents a strategic advance in diversifying and strengthening its supply-chain footprint by utilising a high-capability Australian manufacturing partner. It opens access to Western Australia’s industrial ecosystem and helps address supply-chain resilience by geographically broadening production sources. For VEEM, the partnership offers a sustained platform to scale its defence-grade manufacturing competencies, align with US defence-industry standards and join the long-duration programme cycles typical of global defence primes. This positions VEEM not only to service domestic programmes but to compete in export-oriented supply chains.
Western Australia’s role in defence manufacturing is increasingly recognised, with manufacturing now the largest contributor to the State’s defence gross-value-added (GVA), underscoring the importance of industrial production in the sector. By situating manufacturing activity in Western Australia, the MLA strengthens local employment, boosts capability development and increases visibility of the State’s supply-chain potential.
WA Defence Industries Minister Paul Papalia commented:
This is confirmation of Western Australia’s world-class capability and I want to congratulate VEEM on this milestone, which will support local jobs. My ambition is to grow Western Australia’s defence sector to become our second biggest industry after mining and diversify economy. WA’s defence industry is also playing a crucial role in strengthening the AUKUS partnership.”
The Western Australia Defence and Defence Industry Strategy 2025 recognises WA as a key manufacturing hub and emphasises development of large-scale, high-value capability in the region. The MLA aligns closely with both national and state strategic priorities — reflecting global-prime engagement, enabling technology and capability transfer, and delivering high-value manufacturing in Western Australia. On a national level, the agreement is a tangible demonstration of a domestic manufacturer transitioning from regional capability into the global defence supply network — an outcome strongly encouraged under the Commonwealth’s Defence Industry Development Strategy 2024 (DIDS) and the Global Supply Chain Program, which promote export growth, supply-chain integration and sovereign industrial resilience.
About Northrop Grumman
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
Details on Global Supply Chain Program:
Through our Global Supply Chain Agreement, signed with the Australian Department of Defence in 2011, Northrop Grumman is identifying opportunities for Australian industry to compete within the company’s global supply chain. Over $190 million of opportunities have been realised for Small to Medium Enterprises over the last five years. Supporting supply chain resilience, building sovereign industrial capability and creating export opportunities is a fundamental tenet of Northrop Grumman Australia’s AIC approach.
Providing some of the world’s most advanced products and services to the US Government and 25 other countries globally, Northrop Grumman’s global supply chain offers significant growth opportunities for Australian businesses.
About VEEM Limited
VEEM Limited (ASX: VEE) is an Australian advanced manufacturer of marine-propulsion and defence-components headquartered in Perth, Western Australia. VEEM operates a 14,700 m² purpose-built facility, including Australia’s largest non-ferrous foundry, and has advanced CNC machining, casting and fabrication capabilities spanning more than 250 alloys and high-precision applications.