France (DCNS) wins A$50bn Australia subs contract

9 years ago - Published in Finance, Fundamental Analysis

The French group DCNS Defense rivals out of Germany (ThyssenKrupp) and Japan (Mitsubishi and Kawasaki Heavy Industries) and won a giant contract to build the new Australian submarines worth 50 billion Australian dollars, which means 34 billion euro at current exchange rates. The announcement, which covers a fleet of 12 new submarines, was given directly by the Australian prime minister Malcolm Turnbull, while the French side has even been described as "historic".

The submarines will be built in Adelaide with important consequences in terms of employment, where the Prime Minister made the announcement stressing that a competitive auction, the results of a 15-month bidding process, outcome issued by Australia was unequivocally in favor of the French proposal. The country is increasing its expenditure on defense, with the aim of protecting its strategic and commercial interests in the Asia-Pacific quadrant: the danger is the growth of China's influence.