Arab Today, arab today government source japan fails to win australian submarine contract
Last Updated : GMT 21:53:08
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Government source: Japan fails to win Australian submarine contract

Arab Today, arab today

Arab Today, arab today Government source: Japan fails to win Australian submarine contract

Government source: Japan fails to win Australian submarine contract
Sydney - MENA

Japan has failed to win a multibillion dollar deal to build submarines for the Australian navy, a Japanese government source said Tuesday, according to Kyodo News.

An Australian Cabinet member conveyed the country's decision by phone to the Japanese government on Monday, the source said.

Several Australian news outlets have reported that Australian Prime Minister Malcolm Turnbull will make a formal announcement later Tuesday over the winning bid to build new submarines to replace the Royal Australian Navy's current Collins-class fleet.

According to The Australian newspaper, the "French bid was regarded as stronger than those from Japan and Germany."

Japan's Mitsubishi Heavy Industries Ltd. had been contending with Germany's ThyssenKrupp AG and French defense firm DCNS for the submarine deal. The project to build up to 12 submarines is estimated to cost A$50 billion ($38.6 billion), including maintenance and management costs.

The new submarines will replace the navy's current fleet of six Collins-class submarines scheduled to retire from service in the mid-2020s.

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