French group DCNS wins Australia’s $50b submarines deal
French company DCNS has won the $50 billion contract to build Australia’s next fleet of submarines. Australian Prime Minister Malcolm Turnbull announced Tuesday that the next generation of 12 underwater watercraft will be constructed at the Adelaide shipyard and will secure thousands of job.
“Our future submarines, 12 regionally superior submarines will be built here at Osborne in South Australia. The submarine project alone will see Australian workers building Australian submarines with Australian steel here where we stand today for decades into the future. We do this to secure Australia, to secure our island nation,” Turnbull told reporters in Adelaide.
He added that the Future Submarine project will generate 2,800 jobs for Australians. It will be a vital part of the country’s Defence capability.
Two others bid for the project: ThyssenKrupp Marine Systems of Germany and the Government of Japan. Both submitted their proposals for the comprehensive Competitive Evaluation Process. However, the Turnbull government decided on DCNS as it said it was the most suitable international partner to meet the country’s unique national security requirements, as detailed in the 2016 Defence White Paper. This requirements included superior sensor performance and stealth characteristics, as well as range and endurance similar to the Collins Class submarine.
Other considerations of the Australian government in selecting the winning bidder included the cost, schedule and the Australian industry involvement.
Head of the Future Submarine Program, Rear Admiral Greg Sammut AM CSC, and General Manger Submarines, Rear Admiral Stephen Johnson USN (retired), led the selection process.
Direction de Constructions Navales Services (DCNS) is owned partly by the defence company the Thales SA and the French government. It proposed a diesel-electric version of the existing 5,000-tonne Barracuda nuclear-powered submarine.
Japan’s Minister of Defence, Gen Nakatani, said the Turnbull administration’s decision to pick the French company over them was “deeply regrettable.”
“We will ask Australia to explain why they didn’t pick our design,” he said (via Reuters). Japan was the frontrunner in the contract under former Prime Minister Tony Abbott, who apparently wanted the Asian country’s design and secure the country’s defence ties with Japan.
Japan proposed to build a variant of its 4,000-tonne Soryu submarine, though its inexperience on defence building was questioned by critics.
ThyssenKrupp, on the other hand, proposed double the size of its existing 2,000-tonne Type 214 class submarine to Australia. Sources told Reuters, however, that it was seen as a technical challenge that weighed against Germany’s bid.
“Thyssenkrupp will always be willing to further contribute to Australia’s naval capabilities,” chairman Hans Atzpodien said.
