France's DCNS wins contract to build Australian submarine fleet: sources

[SYDNEY] Australia has awarded a A$50 billion (S$54 billion) contract to build its new fleet of submarines to France's state-controlled naval contractor DCNS Group, two sources said on Tuesday, beating out bids from Germany and Japan.

Australia intends to buy 12 new submarines, a centerpiece of its defence strategy unveiled in February, which called for an increase in military spending of nearly A$30 billion over the next 10 years to protect strategic and trade interests in the Asia-Pacific.

France's state-controlled naval contractor DCNS has proposed a diesel-electric version of its 5,000-tonne Barracuda nuclear-powered submarine.

REUTERS