German visit to press case for submarines contract
German visit to press case for submarines contract
The Australian
January 29, 2016 12:00AM
Andrew White
Associate Editor
The senior leadership of the German company bidding for the $50 billion contract to build Australia’s next generation of sub*marines will visit Canberra for talks with the government next week amid renewed claims a rival Japanese bid is preferred.
Heinrich Hiesinger, the chief executive of German industrial giant ThyssenKrupp, and Hans Atzpodien, who chairs its marine systems division, are expected to press their case for the contract, the biggest for an Australian project and one of the largest in the world recently, at meetings with ministers and defence officials.
ThyssenKrupp has declined to comment on reports in
The Australian this week that the US would withhold its top military defence systems from sub*marines built by the Germans because of concerns the NATO ally could not protect them from Chinese espionage.
The Australian also reported US military officials were quietly urging Australia to favour the Japanese proposal to reinforce efforts to “contain’’ China’s territorial ambitions.
It followed an article in a trade journal by former prime minister Tony Abbott’s nat*ional security adviser Andrew Shearer that claimed US officials were in no doubt about the *“superior capability’’ of the Soryu-class subs Japan wants to build for the navy.
Mr Abbott was considered to have all but guaranteed the contract to the Japanese before a backlash over jobs and local manufacturing led to a competitive evaluation process for bids from Japan, Germany and France. Subs from all three bidders would need extensive modifications to meet specifi*cations and would have to carry US combat and communications systems.
US and Australian government and defence officials are believed to have reassured bidders they are neutral on who should be awarded the contract.
As well as weighing the German bid, the federal government has moved to improve ties with Germany, with Finance Minister Matthias Cormann co-chairing a study last year on the trade and cultural links between the world’s fourth and 12 biggest economies.
Dr Hiesinger is expected to attend a reception at the German embassy next week with politicians, bureaucrats, industry, *academic and finance representatives ahead of formal meetings.
ThyssenKrupp, which built the Anzac frigates at Williamstown in the 1990s, has offered to build most of the subs in Australia and Dr Atzpodien has said 12 of the boats could be built for $20bn. Servicing the subs is expected to add $500 million a year to the value of the contract.
German visit to press case for submarines contract | The Australian
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Looks like the German hasn't quite given up the fight yet