CANBERRA – Australia announced Tuesday that French company DCNS has beat out bidders from Japan and Germany to build the next generation of submarines in Australia’s largest-ever defense contract.
DCNS, Germany’s ThysennKrupp Marine Systems and Japan’s Mitsubishi Heavy Industries were in the running to build 12 conventional submarines that the Australian navy expects will cost at least 56 billion Australian dollars ($43 billion).
Prime Minister Malcolm Turnbull said the French-designed submarines would be built in the Australian manufacturing hub of Adelaide.
“The French offer represented the capabilities best able to meet Australia’s unique needs,” Turnbull told reporters in Adelaide.
“I want to thank TKMS and the government of Japan for their proposals, which were of a very high quality. However, the recommendation of our competitive evaluation process … was unequivocal — that the French offer represented the capabilities best able to meet Australia’s unique needs,” he added.
Addressing the issue of the failed bidders, Turnbull said, “As far as Japan is concerned…both Prime Minister (Shinzo) Abe and I, and our respective governments and, I believe, our respective nations are thoroughly committed to the special strategic partnership between Australia and Japan, which gets stronger all the time.”
In Tokyo, Chief Cabinet Secretary Yoshihide Suga said the Japanese government “feels regret” that Australia decided to choose the French tender, but that Tokyo will continue to deepen security cooperation bilaterally with Canberra and trilaterally with Washington.
“Australia will continue to be a special strategic partner for our country,” the top government spokesman said at a news conference.
Read the full story at Japan Times