(Updates to add a statement from Bisalloy Steel Group in the fourth paragraph, and stock movement in the fifth paragraph)
Bisalloy Steel Group (ASX:BIS) secured a $2 million purchase order from US defense contractor General Dynamics Electric Boat to supply steel for the construction of Virginia-class submarines, The Australian reported Wednesday, citing Australian Defense Industry Minister Pat Conroy.
In remarks delivered at the Australian embassy in Washington, Conroy said Australia-made steel will be used for US Virginia-class submarines for the first time, according to the report.
General Dynamics Electric Boat toldit doesn't have any prepared comments on the matter.
In an Australian bourse filing on Wednesday, Bisalloy said it received its first order to supply HY80 steel to the US submarine industry. Raw steel plate is manufactured by BlueScope Steel (ASX:BSL), while Bisalloy conducts the specialized processing and heat treatment required to produce the HY80 steel, which meets the the US Navy's TP300 standard.
Bisalloy's shares jumped nearly 5% in recent trading on Wednesday.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)