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Australia signs contract to build 12 submarines

IANS  |  Canberra 

The on Monday announced the signing of a A$50 billion ($35 billion) agreement with the French for the construction of its new fleet of 12 Attack class

In a "defining moment for the country", the "will help protect Australia's security and prosperity for decades to come and also deepen the defence relationship between and France", a joint government statement from Scott Morrison, for Defence and for Defence Industry said.

The statement said the submarines, which will be designed and built in for the Navy, will generate an average of 2,800 jobs, reports news.

The 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.

It is expected to take more than 10 years for the first submarine to be ready.

decided in 2016 that the French (formerly known as DCNS) would be responsible for the construction of its new submarine fleet after a tender, but it did not sign the contract until recently, after months of negotiations.

The work on the has taken place under the Design and Mobilisation Contract which will continue under the Strategic Partnership Agreement.

The announcement coincides with China's growing civil and military presence in the Sea and the concern in the region about free navigation in the main passage between the Indian and Pacific Oceans.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 11 2019. 09:24 IST