Australia's defence future built with Illawarra steel, says Conroy

Speaking at a Business Illawarra defence industry conference, Mr Conroy, whose electorate covers southern Newcastle and the eastern shores of Lake Macquarie, said steel produced in the Illawarra would be a key part of the nation's defence build-up.

"Most of the tenders will involve steel, and the best place to get that steel - and it's hard for me to say as a proud Novacastrian - is from the Illawarra," he said.

"There's going to be a lot of demand from the naval shipbuilding industry for your Illawarra steel."

Mr Conroy's comments come just a week after the federal government announced the Surface Fleet Review, which - once implemented - would increase Australia's naval fleet to the largest it's been since World War Two.

While the review cut the number of delayed Hunter Class frigates from nine to six, it also called for 11 new general purpose warships, as well as six new large optionally crewed surface vessels.

The government has prioritised speed in the delivery of the new general purpose warships, with the first three to be built overseas, however this would not preclude Illawarra suppliers from being involved as the ships are built closer to home, Mr Conroy said.

"My message to the steelmakers of the Illawarra is there's going to be so much demand for our plans to increase the size of the fleet to 26 major warships that there's a long future in supplying the naval shipbuilding industry."

The conference in Shellharbour on Friday is the second Illawarra-Shoalhaven Defence Industry Conference, after the first held in Wollongong last year.

Business Illawarra executive director Adam Zarth said it was not only in steel that the region could play a part in the nation's defence industry and that the organisation was seeking a Illawarra defence advocate, to put the Ilalwarra's defence capabilities front and centre

"We really need somebody in those forums, whether it be defence trade shows or otherwise, to fly the flag for the Illawarra and Shoalhaven."