A submarine under construction at Naval Group's Cherbourg yard. The French firm won the contract to build 12 new attack-class subs for Australia. (Photo: AFP/Charly Triballeau)
Reuters: Australia signs $50 billion submarine contract with France after two-year squabble
SYDNEY (Reuters) - Australia signed a production contract with French shipbuilder Naval Group on Monday for a fleet of 12 new submarines, worth A$50 billion ($35.5 billion), ending a two-year wrangle that cast doubt over one of the world’s most lucrative defense deals. Australia selected the French builder as its preferred bidder for the fleet of submarines in 2016 ahead of other offers from Japan and Germany.
However, final contracts were delayed amid domestic media reports of cost blowouts and production delays.
Australia and Naval Group signed a Strategic Partnering Agreement, the overall contract to guide the construction, to end the impasse.
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Update #1: Australia signs massive sub deal with French firm (AFP)
Update #2: Contract to build new Australian submarines to be signed today (The Australian)
WNU Editor: At almost $3 billion per sub, they better perform as promised.
