Local defence manufacturers secure major funding boost
10 February 2026
South Australia’s defence manufacturing industry has received a significant funding boost, with eight local companies securing a combined $2.84 million in the latest round of the Federal Government’s Defence Industry Development Grants (DIDG) program.
The funding aims to strengthen and modernise Australia’s defence industrial capability across four streams; exports, skilling, security and sovereign industrial priorities.
More than $17 million has been allocated to 44 Australian businesses in the latest rounds of the DIDG program.
The grants will drive investment in advanced manufacturing aligned with sovereign defence priorities such as submarines, aerospace, guided weapons, explosive ordnance and advanced technologies. The funding will also help companies pursue export opportunities, improve global competitiveness and meet Defence’s stringent security and capability requirements.
South Australian recipients across all four streams are:
- Levett Engineering – $766,551 for a 5‑axis CNC machine to support fabrication of complex aluminium components for guided weapons, explosive ordnance and munitions, and $250,000 for a DMC75 monoBLOCK milling machine to manufacture precision components for export into US and UK defence supply chains, including the SSN‑AUKUS program and the F-35 Joint Strike Fighter.
- Airspeed – $599,118 for a 5‑axis CNC machine to increase production of carbon‑fibre solid rocket motor cases for the GWEO program.
- MCHND – $400,000 for a CNC 5‑axis machine to manufacture faceplates for Redback Infantry Fighting Vehicles and components for passive radar systems.
- Global Welding Technologies Group – $226,471 to establish an advanced welding manufacturing and training centre for industrial-grade manual and robotic welding applications supporting shipbuilding programs including the Hunter‑class frigates and future AUKUS submarines.
- Nu Metric Manufacturing – $250,000 for precision assembly equipment to support the assembly, inspection and validation of aircraft components for international markets.
- Quality Maritime Surveyors – $239,404 to upskill its workforce in non‑destructive testing to support submarine and ship sustainment activities.
- Shoal Group – $5,139 to develop project management capability aligned with sovereign defence priorities.
- Secure State Consultants – $100,000 to uplift cybersecurity to meet Defence security requirements.
The latest round of the DIDG program brings total funding awarded to more than $51 million, with the broader program representing a $170 million investment in expanding and modernising Australia’s sovereign defence industrial base.
Learn more about the Defence Industry Development Grants Program.
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Image credit: Department of Defence









