DCNS’ share of the overall contract to build 12 submarines will amount to about €8 billion ($9.02 billion), according to sources with knowledge of the deal.
Advertisement
Plus, with an election now coming up fast in Australia, Prime Minister Malcolm Turnbull was able to stand in the shipyard in Adelaide and declare, “it will be built here in Australia, with Australian jobs and Australian Steel”.
French President Francois Hollande hailed the decision as historic.
Mr Turnbull said that “the bulk of the work will be done here” in Adelaide though there would be a supply chain that stretched across the country and some components such as the US-made combat system will be sourced overseas. He told reporters that he would seek an explanation from Australia to find out why the Japanese submarine was not selected “so we can reflect the findings to future operations”.
“What’s important for our defence procurement plan is that we’re actually getting the technology and other transfer that occurs from being involved in these projects”, he said. “Whoever builds the submarines is going to have to incorporate that and that shouldn’t be a problem”. The French naval contractor, which offered the 4,700-ton Shortfin Barracuda (photo), outbid contractors from Germany and Japan.
France’s bid was considered technically strong with its quiet propulsion system that uses a marine equivalent of a jet engine rather than a propeller, a victor.
Turnbull said that the decision was driven by DCNS’ ability to best meet Australia’s requirements for a long-range, conventionally-powered submarine to replace the Royal Australian Navy’s six Collins Class boats.
Mitsubishi said it was “deeply regrettable that Japan’s capabilities were not sufficiently conveyed”. The German company TKMS also offered Australia a 4,000-tonne sub through proposed to scale up its 2,000-tonne Type 214 class submarine.
Both submitted their proposals for the comprehensive Competitive Evaluation Process.
Mr Abe was this week reported to be working behind the scenes to shore up the deal, which is said to have foundered because of Japan’s inexperience in building military equipment for export. The first submarine of the fleet will enter the waters in the early 2030s.
The Japanese government was also reportedly keen to further deepen its military ties to Australia as a counter to China’s rise.
The announcement brought delight to shipbuilders and South Australia which is to lose its automotive industry with the closure of the Holden plant next year.
Advertisement
“The unfortunate takeaway is the way that the news that the Japanese bid was out of favor was leaked and this was, to the maximum extent possible, humiliating to Japan”, said Euan Graham, director, worldwide security at the Lowy Institute, a Australian think tank.
