French Naval Contractor DCNS wins Australia’s New Submarine Fleet Contract Worth $40 billion

Naval Contractor DCNSAccording to sources, France surpassed bids from Germany and Japan and won the A$50 billion or $40 billion contract for building Australia's new fleet of submarines. The contract went to French naval contractor DCNS. The budding defence export industry of Japan suffered a major blow by losing the contract.

Malcolm Turnbull, the Australian Prime Minister is expected to officially announce the news and name the winner of the contract. The French contractor will build 12 new submarines for the country.

The decision came after a long fifteen months of competitive evaluation which began last year in February. Adelaide will be the construction site for the submarines and is expected to create 2,800 jobs.

About the building of the submarines Mr. Turnbull said, "This is securing the future of Australia's navy over decades to come." He added, "Australian workers will be building Australian submarines with Australian steel."
Earlier, Japan was an expected to win the contract and many feel Tony Abbott, the ex- Australian Prime Minister's close relationship with Shinzo Abe, the Japanese Prime Minister had some connection with it.

It is the largest-ever defence procurement for Australia. DCNS, proposed to build a modified version of the Barracuda submarine which is named the Shortfin Barracuda.

Marise Payne, Australia's Defence Minister said, DCNS received undisputed support from the different government experts during the competitive evaluation process.