VEEM Ltd (ASX:VEE) has been awarded an AU$1 million grant under the Australian Government's Sovereign Defense Industrial Priorities program to support its efforts to strengthen the country's defense manufacturing capabilities, according to a Wednesday filing with the Australian bourse.
The grant will fund the purchase and installation of a multi-axis computer numerical control machine and scanner, which will be used to manufacture propellers and other critical components for the Australian Navy, the filing said.
The total cost of the project is estimated at over AU$2 million, with the AU$1 million grant covering up to 50% of the expenses.
VEEM is currently expanding its facilities in Western Australia, with the new machine set to be installed in the extended premises by Dec.31, 2025.
Shares of VEEM inched up 2% in recent Wednesday trade.
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