Veem Limited (ASX:VEE)

Mark Miocevich
Market Cap (AUD): 53.61M
Sector: Industrials
Last Trade (AUD): 0.385 -0.01 (-2.53%)
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1. About

VEEM Limited (ASX:VEE) is a premium manufacturer of sophisticated equipment for the marine, aerospace, defence and oil and gas industries.

By the late 1980s VEEM had won its first major defence contract for the manufacture of submarine valves for the new Australian Submarine Program. Some twenty five years later VEEM Ltd is still manufacturing these safety critical, submarine hull valves a testament to the VEEMs focus on quality control and adherence to stringent standards of manufacture.

Also during the late 1980s VEEM Ltd acquired its first foundry. A second foundry was purchased shortly after. The company then integrated all operations onto one site in their Western Australian headquarters in Canning Vale. Today the VEEM Ltd operation covers some 10,500 square metres comprising Australias largest non-ferrous foundry, CNC machine shops, fitting shops, pattern shops, welding shops and design and administration offices.

Another local success story, Austal Limited (ASX:ASB) also featured in the growth of VEEM. As Austal ships developed its range of world beating aluminium ships in the nineties there became a need for the supply of superior hollow bronze castings for ride control ailerons and associated components. This relationship has been developing for twenty years with VEEM Ltd now supplying fifteen tonne castings for Austal Ships US warship programme.

As the business grew, the directors realized that the service sector was limited by the physical boundaries of the Western Australian market place and to be successful globally, VEEM Ltd really needed to expand to not only manufacture bespoke equipment for others, but to become a manufacturer of its own technology.

Recognizing the growing global market demand for high performance, marine propellers, VEEM Ltd began developing its existing propeller manufacturing capability to target this highly specialist market segment. In order to beat all comers, it was necessary to have superb designs, ground breaking technology and associated patents, plus the most advanced CNC machinery and robotics in the world to manufacture these items to the necessary accuracy. A strong, global distribution network, a highly advanced internet porthole and production tracking capability for clients, were also critical features for a modern global product. Having put this combination together, VEEM Ltd proceeded to release the new VEEM propeller range and in so doing pioneered the world of high performance, marine propellers.

Building upon its core strengths in the fields of technology and precision engineering design, VEEM Ltd geared up in 2012 to manufacture powerful gyrostabilisers for super yachts, patrol boats and offshore working vessels.  VEEM Gyrostabilisers are powerful, highest quality, roll stabilisation devices specifically engineered for use on large boats and small ships. The combination of VEEMs unwavering passion for beautiful design, engineering excellence, and VEEMs long history of manufacturing and supporting the highest quality marine equipment has resulted in another world beating series of products.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk