France beats Japan, Germany to win lucrative Australia deal
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Australian Prime Minister Malcolm Turnbull (L) and Defense Minister Marise Payne (R) announce that French contractor DCNS beat Germany and Japan for a $40 billion submarine contract on April 26, 2016. ©AFP
Australia awards France a $40-billion contract to build 12 submarines as the country's arms spending hits new heights amid the US military buildup in the Asia-Pacific region.
Australian Prime Minister Malcolm Turnbull said on Tuesday France’s state-controlled naval contractor DCNS Group had beaten bids from Germany’s TKS company and the Japanese government to secure the deal.
He said the vessels would be built in Adelaide using Australian steel and the first French-made submarine will hit the water in the early 2030s.
Australia says the project is part of a plan to protect its strategic interests in the Asia-Pacific region, where the US and its allies seek to check the increasing power of China.
Australia’s defense and security expenditures have more than doubled in recent years.
Its growing military budget and force buildup is largely geared to more overseas support for US and allied intervention. Australian intelligence is seen as an adjunct to US agencies.
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