VEEM receives $9m submarine parts order

Marine technology company VEEM has secured a $9 million order from the Australian Submarine Corporation for specialised parts for the Collins-class submarine maintenance program.

Work will start immediately at VEEM’s Canningvale facility, with deliveries expected to occur over 15 months from July 2020.

VEEM managing director Mark Miocevich said the work would positively impact the company's profitability to June 2021.

“While marine gryostabilisation 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,” he said.

Collins-class submarines will be replaced by Attack-class submarines in the early 2030s.

The announcement comes two weeks after the company launched a new gyrostabiliser and a facility with the capacity to produce more than $100 million worth of gyros a year.

VEEM said the facility had been established to meet the rise in demand for its gyro products range.

Gyrostabilisers are usually located in the engine room and reduce the rolling motion of a vessel in waves.

The new facility is adjacent to VEEM’s operations in Canningvale.

VEEM also launched a new 20 metric tonne gyrostabiliser, VG1000 SD, to be delivered to Netherlands-based Damen Shipyards.

The VG1000 SD will be installed into Damen’s Fast Crew Supplier, FCS 7011, which is under construction and expected to launch later this year.

VEEM’s share price was up 2 cents to 48.5 cents at 1:30pm AWST.