Economics
France's DCNS Wins $39 Billion Australian Submarine Contract
- State-controlled DCNS beats Germany's Thyssenkrupp, Japan bid
- Decision is a blow to Japan's arms export industry ambitions
How France's DCNS Group Won a $39B Australia Sub Deal
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Australia snubbed a bid from Japan to award one of the world’s biggest defense deals to France’s DCNS Group, opting for a contract that will generate jobs in Australia and minimize a backlash from its major trading partner China.
The French offer for the A$50 billion ($39 billion) contract to build 12 submarines trumped those by Japan’s Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd., and Thyssenkrupp AG of Germany. DCNS will build the fleet in Adelaide and the project should create about 2,800 jobs, a point Prime Minister Malcolm Turnbull made in announcing the winner Tuesday ahead of an election expected in July.