Australia’s nuclear renaissance ignites opportunity for local industry

The AUKUS alliance is creating potential opportunities for Australian companies linked to our growing nuclear sector
Local firms poised to capitalise on multibillion dollar boost to our technology and advanced manufacturing industries
Small caps such as Duratec and Quickstep are securing critical roles in defence infrastructure and advanced manufacturing

Special Report: The AUKUS alliance could unlock big opportunities for local companies able to capitalise on growing nuclear-related industry.

There’s been hot debate about the Australian-UK-US plan to provide Australia with nuclear-powered submarines at a cost of up to $368 billion. But one thing seems clear: The AUKUS alliance presents potentially huge opportunities for local companies aligned with the burgeoning nuclear technology and advanced manufacturing sectors.

Australia is already preparing to conduct maintenance for deployments of up to five nuclear-powered submarines from the US and UK to Western Australia’s HMAS Stirling base in 2027.

With ambitious plans for eight more to be built and acquired by Australia, and defence spending rising to $100 billion annually within the next decade, the spotlight is on local companies capable of meeting the security alliance’s stringent demands and able to tap into its multibillion-dollar budget.

So, which Australian companies could be in pole position to capitalise on such opportunities?

Duratec: Building the infrastructure backbone

Perth-based Duratec has been quietly establishing itself as a key player in defence infrastructure. The company’s expertise in high-security and sensitive projects has positioned it at the forefront of infrastructure upgrades required under AUKUS.

Duratec has secured early contractor involvement (ECI) contracts for critical upgrades at HMAS Stirling. These include the construction of nuclear-compliant facilities and submarine-supporting infrastructure, which will be essential for accommodating UK and US nuclear-powered submarines by 2027. These projects are expected to employ up to 300 people and represent a significant boost for the local economy.

Chief executive Chris Oates recently highlighted to the Australian the importance of collaboration and early contractor involvement in ensuring these projects run smoothly.

“The earlier you include or involve us in trying to problem solve and remove complexities, the better your project will run,” he said.

Duratec’s preparations go beyond infrastructure. The company is actively training its teams to become certified for nuclear builds, upskilling in the UK to meet the extreme standards required for nuclear-powered environments.

With a committed forward order book exceeding $400 million and $1.5 billion in tendered projects, Duratec is set to play a pivotal role in delivering the infrastructure backbone for AUKUS.

Quickstep: Advanced manufacturing for defence

Quickstep Holdings, a leading advanced manufacturer of composite materials, is also well poised to benefit from the AUKUS alliance. As a trusted supplier to the defence industry, Quickstep produces high-performance components for aerospace and military applications, including parts for the F-35 fighter jet.

Quickstep’s capabilities align perfectly with the needs of AUKUS, particularly as the company moves toward securing ISO 19443 certification, which is critical for supplying components for nuclear-powered vessels and infrastructure. This certification would place the company in an elite category of suppliers qualified to meet the stringent requirements of the nuclear sector.

Quickstep has also demonstrated its ability to scale operations effectively, recently opening new facilities to support increased demand from defence clients.

UBH Group: Transformational opportunity

UBH Group is Australia’s only nuclear-certified technology company. It meets the rigorous requirements of ISO 19443 certification, which is vital for participation in the nuclear sector.

UBH co-founder and CEO Jeff Batten said as the clock ticks toward SRF-West and the arrival of nuclear-powered submarines at HMAS Stirling in 2027, the pressure is on Australian companies to meet the rigorous standards required for participation in the nuclear supply chain.

“ISO 19443 certification takes 12 to 18 months to complete, and with SRF-West (the arrival of the nuclear-powered submarines at HMAS Stirling) just a few years away, we need the entire supply chain to mobilise and align with international standards,” he said.

UBH Group recently appointed industry veteran Mark Schneider as its inaugural chief nuclear officer. Schneider, a nuclear engineer with decades of experience in the US Navy, said the company wasn’t addressing the country’s current needs but laying the groundwork to future-proof Australian industry.

UBH is also urging other SMEs to step up to make the most of Australia’s AUKUS opportunities.

“This accomplishment is not just about UBH,” said Schneider.

“It’s about inspiring Australia’s SMEs to rise to the challenge and engage in the global nuclear supply chain.

“From adhesives to specialised tools, every component matters in creating a safe, efficient and world-class nuclear ecosystem.”

This article was developed in collaboration with UBH Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.