Sub parts to be built outside South Australia

The Gillard government has dealt a blow to South Australia's defence industry, conceding key components and modules of the $35 billion future submarine project will be built outside of the state.

The future submarine project - the biggest defence project in the nation's history - has been spruiked by the Rann Labor government as being potentially worth much more than the Olympic Dam mine expansion to the state's coffers.

However, the leader of the government in the Senate, Chris Evans, has indicated components and possibly modules are expected to be constructed interstate and overseas, despite a previous commitment from the Gillard government to build the submarines in South Australia using the state's defence expertise and world-class facilities at the Techport facility near Port Adelaide.

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