French group wins $35.5 billion defence deal from Australia

Remigio Civitarese
Febbraio 12, 2019

Thousands of direct and indirect Australian jobs will also be created and long-term planning certainty for industry will allow Australian companies involved in the submarine program to invest in the capabilities needed to support their involvement in construction and sustainment activities.

The Australian government on Monday announced the signing of a AUSD 50 billion (USD 35 billion) agreement with the French Naval Group for the construction of its new fleet of 12 Attack class submarines.

Negotiations on the SPA began in early 2017 and were meant to have been completed during that year, but was delayed by issues including the length of warranty periods and the implications of a possible merger between Naval Group and Italy's Fincantieri.

The submarines are a major pillar of the government's $90 billion National Shipbuilding Plan, under which 54 naval vessels will be built in Australia.

Pyne, who has repeatedly denied that the project has been set back by protracted SPA negotiations, saying the signing was a "defining moment" for Australia. "Some work on the future submarines has already taken place under a design and mobilization contract and this will continue uninterrupted under today's agreement", the Royal Australian Navy said in a statement today.

In 2016, France won a tender for the construction of 12 new-generation submarines for Australia, beating Japan and Germany. Program milestones include pre-sizing of the Future Submarine has been completed, feasibility study phase of the Future Submarine design contract being undertaken in France with the support of Australian engineers has been completed.

"We are very excited about the opportunities that lay ahead of us and are committed to delivering the Future Submarine Program for Australia". Initial design work for the new submarine class is now taking place in Adelaide and Naval Group's headquarters in Cherbourg, France.

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