Saturday, 23 February, 2019

Naval Group signed future submarine SPA with Australia

Australian Prime Minister Scott Morrison attended a ceremony in Canberra to sign a A$50 billion contract with France to build 12 state of the art submarines on Feb 11 2019 Australia Signs $35Bln Submarine Deal With French Contractor - Defence Minister
Melinda Barton | 12 February, 2019, 22:18

Under the IGA, the 12 subs, save for some specialized parts, will be built in Adelaide in South Australia, home to the Australian Submarine Corporation (ASC).

Australia today signed a "Strategic Partnering Agreement" with the French contractor Naval Group for Attack-class submarines, the Australian defense ministry announced Monday.

The Australian Broadcasting Corporation (ABC) in December 2018 reported that Naval Group had made "unprecedented" requests during SPA negotiations, including asking for a 25 percent cost blowout allowance and a two-year extension.

Morrison said work on the design of the Attack class has continued without interruption under an AUD500 million Design and Mobilisation contract that was signed in September 2016, and would continue uninterrupted under the SPA.

However, a joint statement from Prime Minister Scott Morrison and Defence Minister Christopher Pyne said work would continue on the first attack class submarine, to be named HMAS Attack, to deliver it within budget in the early 2030s.

Australian Prime Minister Scott Morrison and Defence Minister Christopher Pyne met with French Defense Minister Florence Parly in Canberra on Monday to sign the Strategic Partnership Agreement (SPA) to guide the project, nearly three years after Naval Group, formerly known as DCNS, was selected to build the submarines.

"We are grateful to the teams from the Commonwealth of Australia and Naval Group who have worked hard to achieve this agreement", said Mr Guillou. "The formalization of the [SPA] represents the contractual basis for the program". Initial design work for the new submarine class is now taking place in Adelaide and Naval Group's headquarters in Cherbourg, France.

- Conducted numerous engagement activities in France and Australia to connect potential European and Australian suppliers.