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VEEM awarded $9 million submarine component order

  • VEEM has secured a $9 million order from the Australian Submarine Corporation (ASC) for certain specialised components of the Collins Class maintenance program.
  • The award of the contract demonstrates the recurring nature of the demand for VEEM’s traditional, highly specialised defence engineering capability.
  • Work will commence immediately with deliveries commencing July 2020.

VEEM Limited (ASX: VEE) (‘VEEM’ or ‘the Company’), is pleased to announce that it has received orders for approximately $9 million from the Australian Submarine Corporation (ASC) for certain specialised parts as part of the maintenance program for the Collins class submarines.

Work will commence immediately at VEEM’s specialised engineering facility in Canning Vale, Western Australia, with deliveries expected to occur over 15 months from July 2020.

This order follows a long history of work successfully completed by VEEM for the ASC and highlights the Company’s ability to consistently deliver highly-specialised engineering that meets the stringent standards required for defence contracts.

VEEM Managing Director, Mr Mark Miocevich, commented: “The new contract with ASC is further demonstration of our reputation for precision engineering to the exacting defence standards. This work will positively impact our profitability in the current and next financial years.

“While marine gyrostabilization is VEEM’s disruptive product range with huge growth potential, this $9 million contract demonstrates again the capacity of our traditional business to contribute growing recurring profits and will underpin our business during these uncertain times.”

Read the full ASX announcement here.