DCNS bagged the contract having beaten competition from Germany’s ThyssenKrupp AG and Japan’s Kawasaki Heavy Industries and Mitsubishi Heavy Industries.
In a significant development, France and Australia have signed a deal worth $36.3 billion in which French naval contractor will build a fleet of submarines for Australia.
Earlier this year in April, Australia chose France’s DCNS from contractors around the world, including from Japan and Germany, as its preferred bidder, to build a fleet of 12 submarines.
The deal which has been signed today, marks one of the world’s most lucrative defense contracts.
“This is a critically important step in the development of our security, in the assurance of our government in delivering Australians the security and prosperity that they need,” said Australian Prime Minister Malcolm Turnbull.
The new fleet of submarines will form the centrepiece of Australia’s defense strategy which called for increased military spending of nearly A$30 billion across the next decade, so as to protect its strategic interests and promote trade in the Asia-Pacific region.
DCNS won the contract after beating Germany’s ThyssenKrupp AG and Japan’s Kawasaki Heavy Industries and Mitsubishi Heavy Industries.
Earlier this year, following a leak which, published in an Australian newspaper, of 22,000 pages of confidential documents related to details of submarines which DCNS was building for India, ministers in the Australian government said they were certain that the security of the new submarine fleet will be maintained.
“We are continuing to invest in cyber security, which is a major part of warfare into the future,” Christopher Pyne, Australia’s Defence Minister.
($1 = 1.3782 Australian dollars)