A French company has beaten competitors in Germany and Japan to secure the contract to build Australia's next fleet of submarines, with the Federal Government promising thousands of Australian jobs will be created.
The much-anticipated $50 billion contract has been settled in the febrile, pre-election period and is the culmination of years of work within the Defence Department. The Prime Minister flew to Adelaide to make the official announcement, flanked by his Defence Minister and local cabinet colleague Christopher Pyne, who holds a marginal SA seat.
Malcolm Turnbull stressed the submarines would be built in Adelaide and the project would create 2,800 Australian jobs.
"This is a great day for our Navy, a great day for Australia's 21st century economy, a great day for the jobs of the future," Mr Turnbull said during a visit to Adelaide.
"Australian built, Australian jobs, Australian steel, here right where we stand."
Mr Turnbull said while the bulk of the submarine build will occur in Adelaide, contractors across the country will also benefit from the project.
"There will be obviously a supply chain, which will include other parts of Australia," he said.
"But as with every project there are contractors across the country and indeed there will be components that will be sourced."
The $50 billion contract will see 12 submarines built to replace the Royal Australian Navy's ageing Collins Class fleet.
Japan and Germany also submitted bids for the contract. The Government's decision comes after a competitive evaluation process and ends months of speculation. It also comes just days after the Government announced Adelaide shipbuilders would start the construction of 12 offshore patrol vessels in 2018 before starting on a fleet of frigates in 2020. The move was designed to ensure a continuous ship build for Adelaide workers and sustain employment.
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