ahlam1399
04-27-2016, 04:41 AM
‘Submarine deal is a blow for Japan’s push to develop defence
export capabilities as part of a more muscular security agenda’
SYDNEY/TOKYO: France has beaten Japan and Germany to win a A$50 billion deal to build a fleet of 12 submarines for Australia, one of the world´s most lucrative defence contracts, Australian Prime Minister Malcolm Turnbull an**unced on Tuesday.
The victory for state-owned naval contractor DCNS Group underscored France´s strengths in developing a compelling military-industrial bid, and is a blow for Japanese Prime Minister Shinzo Abe´s push to develop defence export capabilities as part of a more muscular security agenda.
Reuters earlier reported that DCNS would be an**unced as the winner, citing sources with k**wledge of the process.
‘‘The recommendation of our competitive evaluation process ...was unequivocal that the French offer represented the capabilities best able to meet Australia’s unique needs’’ Turnbull told reporters in the South Australian state capital of Adelaide where the submarines will be built.
In a statement, French President Francois Hollande said the deal ‘‘marks a decisive step in the strategic partnership between our two countries’’, while Prime Minister Manuel Valls said it was ‘‘cause for optimism and pride.
‘‘The French shipbuilder’s share of the overall contract will amount to about 8 billion euros, according to sources with k**wledge of the deal.
DCNS chief Hervé Guillou said the deal would create around 4,000 French jobs, benefiting shipyards and industrial sites in Lorient, Brest, Nantes and Cherbourg.
Australia is ramping up defence spending, seeking to protect its strategic and trade interests in Asia-Pacific as the United States and its allies grapple with China´s rising power.
Japan’s government with its Mitsubishi Heavy Industries and Kawasaki Heavy Industries boat had been seen as early frontrunners for the contract, but their inexperience in global defence deals and an initial reluctance to say they would build in Australia saw them slip behind DCNS and Germany´s ThyssenKrupp AG.
Industry watchers had anticipated a decision to come later in the year, but Turnbull´s gamble on a July 2 general election sped up the process.
The contract will have an impact on thousands of jobs in the shipbuilding industry in South Australia, where retaining votes in key electorates will be critical for the government´s chances of re-election.
‘‘The submarine project ...will see Australian workers building Australian submarines with Australian steel,’’ said Turnbull.
DCNS, which traces its roots to 1624 and is 35 percent-owned by defence electronics giant Thales SA, proposed a diesel-electric version of its 5,000-tonne Barracuda nuclear-powered submarine.
DCNS enlisted heads of industry and top government figures to convince Australia of the merits of its offering and the benefits to the broader relationship.
‘‘This is a great opportunity for DCNS because they will work with the Australian navy for the long run as it is a ****** of contracts and a huge opportunity to invest more and to develop business,’’ French Eco**my Minister Emmanuel Macron said on the sidelines of a trade fair in Han**ver, Germany. Thales shares initially rose more than 3 percent in Paris to a record high.
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export capabilities as part of a more muscular security agenda’
SYDNEY/TOKYO: France has beaten Japan and Germany to win a A$50 billion deal to build a fleet of 12 submarines for Australia, one of the world´s most lucrative defence contracts, Australian Prime Minister Malcolm Turnbull an**unced on Tuesday.
The victory for state-owned naval contractor DCNS Group underscored France´s strengths in developing a compelling military-industrial bid, and is a blow for Japanese Prime Minister Shinzo Abe´s push to develop defence export capabilities as part of a more muscular security agenda.
Reuters earlier reported that DCNS would be an**unced as the winner, citing sources with k**wledge of the process.
‘‘The recommendation of our competitive evaluation process ...was unequivocal that the French offer represented the capabilities best able to meet Australia’s unique needs’’ Turnbull told reporters in the South Australian state capital of Adelaide where the submarines will be built.
In a statement, French President Francois Hollande said the deal ‘‘marks a decisive step in the strategic partnership between our two countries’’, while Prime Minister Manuel Valls said it was ‘‘cause for optimism and pride.
‘‘The French shipbuilder’s share of the overall contract will amount to about 8 billion euros, according to sources with k**wledge of the deal.
DCNS chief Hervé Guillou said the deal would create around 4,000 French jobs, benefiting shipyards and industrial sites in Lorient, Brest, Nantes and Cherbourg.
Australia is ramping up defence spending, seeking to protect its strategic and trade interests in Asia-Pacific as the United States and its allies grapple with China´s rising power.
Japan’s government with its Mitsubishi Heavy Industries and Kawasaki Heavy Industries boat had been seen as early frontrunners for the contract, but their inexperience in global defence deals and an initial reluctance to say they would build in Australia saw them slip behind DCNS and Germany´s ThyssenKrupp AG.
Industry watchers had anticipated a decision to come later in the year, but Turnbull´s gamble on a July 2 general election sped up the process.
The contract will have an impact on thousands of jobs in the shipbuilding industry in South Australia, where retaining votes in key electorates will be critical for the government´s chances of re-election.
‘‘The submarine project ...will see Australian workers building Australian submarines with Australian steel,’’ said Turnbull.
DCNS, which traces its roots to 1624 and is 35 percent-owned by defence electronics giant Thales SA, proposed a diesel-electric version of its 5,000-tonne Barracuda nuclear-powered submarine.
DCNS enlisted heads of industry and top government figures to convince Australia of the merits of its offering and the benefits to the broader relationship.
‘‘This is a great opportunity for DCNS because they will work with the Australian navy for the long run as it is a ****** of contracts and a huge opportunity to invest more and to develop business,’’ French Eco**my Minister Emmanuel Macron said on the sidelines of a trade fair in Han**ver, Germany. Thales shares initially rose more than 3 percent in Paris to a record high.
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