DCNS of France has beaten competitors from Japan and Germany to win a A$50bn politically charged contract to build a new fleet of 12 submarines for the Australian navy.
Tuesday’s announcement of DCNS as preferred bidder deals a blow to Shinzo Abe, Japan’s prime minister, who lobbied hard for a contract that would have boosted defence ties with Canberra and bolstered plans to build an arms export industry.
Insiders in the bidding process believe Japan’s bid failed mainly due to concerns over the ability of Mitsubishi Heavy Industries and Kawasaki Heavy Industries to transfer technology to Australia, where the submarines will be built, and its lack of a record on delivering big defence export projects.
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