Japan is in pole position to win the A$20bn contract to replace Australia’s ageing submarine fleet, edging out European manufacturers which are also eager to build the vessels.
Japan’s chances improved after Australia opted against holding an open tender and follows a recent defence co-operation deal between Tokyo and Canberra. There have also been ministerial-level talks on the potential purchase of Soryu-class submarines built by Mitsubishi Heavy Industries and Kawasaki Heavy Industries.
If a deal were to be agreed it would represent the largest export of military equipment by Japan since it adopted strict rules on weapons’ sales in the aftermath of the second world war.
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