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Highlight

  • Veem awarded $2 million under the Defence Industry Development Grants (DIDG) Program.

  • Funding will support installation of advanced 3D sand printer and CNC machine for submarine component manufacturing.

  • Facility expansion in Perth underway, with completion targeted for end of 2025.

Perth-based marine propulsion and stabilisation specialist Veem Ltd (ASX:VEE) has secured two significant grants under the Defence Industry Development Grants (DIDG) Program, receiving a combined $2 million to bolster its defence manufacturing capabilities. The announcement was made to the ASX on Monday following the official award of grants on Friday.

The funding, awarded through the DIDG program’s Sovereign Industry Priorities Stream, will co-fund two major capital investment projects by Veem — the acquisition and installation of a 3D sand printer and a multi-axis CNC machine. Each grant provides $1 million, covering approximately half the cost of each project.

These technologies will play a key role in producing high-precision components required for Nuclear-Powered Submarines (NPS), Unmanned Underwater Vehicles (UUVs), and other naval platforms. Specifically, the 3D printer will create moulds for casting essential items such as propellers and valves, while the CNC machine will be used for machining those same parts to tight tolerances.

Veem’s Managing Director, Mark Miocevich, welcomed the investment, stating:

“This funding enables us to increase our capacity and capability for manufacturing propellers and other critical components for Navy — and for the Nuclear-Powered Submarine program in particular. Veem looks forward to the increased opportunities for local manufacture coming out of AUKUS and other naval shipbuilding programs.”

As part of its broader strategic development, Veem is currently in the design phase of a facility extension in Perth. The project is expected to be completed by the end of 2025, with new equipment expected to be commissioned in the second half of the 2026 financial year.

Veem has long served the international motor yacht, fast ferry, commercial workboat, and defence markets, but the latest developments signal a sharpened focus on defence manufacturing. The company is already participating in the Australian Submarine Supplier Qualification (AUSSQ) pilot program in partnership with Huntington Ingalls Industries (HII), which aims to qualify Australian suppliers for entry into the U.S. submarine industrial base.

Defence Industry Minister Pat Conroy confirmed that 58 grants worth a total of $16.5 million were awarded across four streams under the DIDG program. Each grant is designed to cover up to 50% of eligible project costs.