25 April 2016

News Story: Race for $39 bn Australian submarine contract hots up

The international race between France, Germany and Japan to win a US$39-billion-dollar contract to build new submarines for Australia is reaching a climax with reports a decision could come next week and that Tokyo is all but out.

The Australian cabinet's National Security Committee met this week to weigh up the options from France's shipbuilder DCNS, the Australian subsidiary of Germany's ThyssenKrupp Marine Systems and the Japanese government-backed consortium led by Mitsubishi Heavy Industries.

Prime Minister Turnbull has said a decision "will be made in due course, it will be made shortly", but he declined to elaborate.

The committee's findings will go to the full cabinet amid unconfirmed reports of an announcement next week.

The Australian newspaper reported that the Japanese bid was considered the weakest and the French "the strongest".

After a year running as favourite, Japan has now been virtually eliminated from the contest, The Wall Street Journal said, quoting people familiar with the matter.

Read the full story at SpaceWar