The ABC is also reporting this (StingrayOZ has provided a link on page 1231) they are saying that the announcement is next week and it will be European. The Australian could just be repeating the ABC news article.
Some of us don't have a subscription to the OZ, can you give us a quick overview of whats in the article please.
Japan has been virtually eliminated from a multibillion-dollar contest to supply Australia’s navy with new submarines, two people familiar with the matter said, with German or French competitors now favoured to win one of the world’s most lucrative current weapons deals.
Senior Australian security ministers met on Tuesday to consider offers to build 12 conventionally powered submarines in Australia, the people said. While the conservative government has yet to make a final decision, one of the people said the Japanese bid was viewed as having “considerable risk,” given Japanese inexperience building naval equipment overseas.
The government is expected to next week award the $50 billion ($US39.07bn) contract to either German shipbuilder ThyssenKrupp Marine Systems Australia, a subsidiary of ThyssenKrupp Marine Systems GmbH set up to pursue the Australian contract, or French contender DCNS.
The German company — one of the world’s largest suppliers of conventionally powered submarines — was emerging as a frontrunner, having promised to transfer advanced manufacturing skills to an Australian hub where the submarines would be built, the people familiar with the matter said.
Mitsubishi Heavy Industries, the lead company in the Japanese consortium, declined to comment on the group’s bid. Chief Cabinet Secretary Yoshihide Suga, the Japanese government’s top spokesman, also declined to comment, saying the selection process was continuing.
ThyssenKrupp is offering its new Type 216 submarine, designed to meet Australian requirements that include long-range capability and endurance to suit the country’s vast ocean territory. It is up against a conventional version of the 4,700-metric-ton Barracuda, built by DCNS, and Japan’s 4,000-ton Soryu, built by Mitsubishi Heavy and Kawasaki Shipbuilding Corp.
A DCNS spokesman said the French state-owned shipbuilder believed the government was still going through its selection process, with a final decision yet to be made.
ThyssenKrupp’s Australian chairman, John White, said the decision-making process had been tightly run, with no indications emerging of whether the company was likely to be successful.
Australia’s submarine replacement is being closely followed in Washington, given strategic jostling with China. The US has given assurances to Canberra that it won’t stand in the way of the installation of sensitive US Navy combat systems on Australian submarines if a European company wins the contract. US-based Raytheon and Lockheed Martin are both vying to supply Australia with systems similar to those used to control US nuclear vessels.
The contract decision also has become a political flashpoint in the lead-up to a general election, which Prime Minister Malcolm Turnbull this week signalled will come in July.
Naval shipbuilding and manufacturing jobs have been a central issue, with Mr Turnbull promising $38 billion in surface-warship contracts for the state of South Australia, which has been hit hard by auto-industry manufacturing closures. The submarines are also likely to be built in the South Australian capital of Adelaide.
An unsuccessful Japanese bid would be a blow to the country’s hopes of becoming a major arms exporter for the first time since World War II. Japan had initially been favoured to win the contest given close ties between Australia’s former prime minister, Tony Abbott, and Japan’s Shinzo Abe, who in 2014 eased a ban on weapons exports.
The deal was seen by some strategic analysts as a test case for how Japan could reposition itself in the region as Mr Abe seeks to use military-hardware trade to help build ties with neighbours wary of China’s growing strength and muscle-flexing in the South China Sea.
Both the Germans and the Japanese stepped up advertising this week in hopes of adding momentum to their bids. Mitsubishi Heavy Industries also set up an Australian subsidiary in Sydney to support its bid.
Dow Jones newswires