Australia signs contract to build 12 submarines | #100175

Australia signs contract to build 12 submarines | #100175

Australia signs contract to build 12 submarines | #100175

With all 12 submarines to be built in Australia, the program is estimated to generate roughly 2,800 jobs per year.

The Australian government has signed an agreement with French Naval Group to build 12 attack class submarines worth 50 billion Australian dollars ($35.5 billion) for the Royal Australian Navy, the Australian defense minister said on Monday.

According to CNBC news reports, Australia has selected the French shipbuilder as its preferred bidder in order to produce submarines in 2016 ahead of other deal offers from Germany and Japan.

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The first Attack-class submarine will be named HMAS Attack and it will be delivered in early 2030s, the newspaper quoted a joint statement by Australian Prime Minister Scott Morrison and Defence Minister Christopher Pyne.

"We are grateful to the teams from the Commonwealth of Australia and Naval Group who have worked hard to achieve this agreement", said Guillou.

The Feasibility Study phase of the Future Submarine design contract being undertaken in France with the support of Australian engineers has been completed. Phase 1 of the onsite works will focus on site establishment, earth works and piling for the new facilities with the development to create at least 600 jobs. The next group of engineers will depart for France in March 2019.

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The Australian government is committed to maximising "local industry" involvement in the programme and "to ensure Australians get the most out of this important national investment", it added.

The Australian Broadcasting Corporation (ABC) in December 2018 reported that Naval Group had made "unprecedented" requests during SPA negotiations, including asking for a 25 percent cost blowout allowance and a two-year extension.

- Conducted numerous engagement activities in France and Australia to connect potential European and Australian suppliers.

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