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Tuesday, December 02, 2014

Australia rules out open tender for new submarines, Japan in box seat

Soryu class SSKAustralia will not hold an open tender to replace its ageing Collins-class submarines, government officials said on Tuesday, a decision that bolsters Japan's position as the likely builder of the new multibillion-dollar fleet.

Reuters reported in September that Australia was leaning towards buying as many as 12 off-the-shelf stealth submarines from Japan despite domestic pressure to build them at home.

Since then, several European defence contractors have said they would be price competitive with Japan and do the work in Australia in a bid to win a piece of the overall A$40 billion ($33.96 billion) submarine programme.

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