The Australian Government has selected French company DCNS to design 12 submarines which will be constructed at a shipyard in Adelaide, South Australia.
The contract is worth AU$50 billion (US$39 billion) and follows a competitive evaluation process involving DCNS, TKMS of Germany and the Government of Japan.
"This decision was driven by DCNS's ability to best meet all of our unique capability requirements," Malcolm Turnbull, Australia's prime minister said in a statement. "These included superior sensor performance and stealth characteristics, as well as range and endurance similar to the Collins-class submarine. The government's considerations also included cost, schedule, program execution, through-life support and Australian industry involvement."
Subject to discussions on commercial matters, the design of the submarine with DCNS will begin this year.
The Australian Government is also conducting a strategic review of the workforce, skills and infrastructure needs as part of its Naval Shipbuilding Plan, to be released this year.
The plan will bring together the requirements for the future submarine program, along with the more than AU$35 billion future frigate program and the more than AU$3 billion offshore patrol vessel program.
