A significant milestone has been achieved with the signing of the Future Submarine Program Strategic Partnering Agreement (SPA) by Australia and French shipbuilder Naval Group.

The production contract with ABIE France member Naval Group for a fleet of 12 new submarines, worth A$50 billion ($35.5 billion), was signed on Monday in the presence of Prime Minister Scott Morrison, The Hon. Christopher Pyne, Minister for Defence and Florence Parly, French Minister for the Armed Forces.

The agreement sets out the principles of cooperation between the two partners for the Attack class Submarine Program, including:

• the delivery of 12 regionally superior submarines to Australia with leading edge capabilities;
• the delivery of new technologies and advanced manufacturing capabilities to Australia;
• the creation of thousands of direct and indirect Australian jobs which will positively impact many generations of Australians; and
• opportunities and long-term planning certainty for industry, allowing Australian companies involved in the submarine program to invest in the capabilities needed to support their involvement in construction and sustainment activities.

“Naval Group is known for building world-leading, technologically advanced submarines and has built 100 of them for nine different countries,” said Hervé Guillou, Chairman and CEO, Naval Group.

“We are very excited about the opportunities that lay ahead of us and are committed to delivering the Future Submarine Program for Australia.”

Australia selected the French builder as its preferred bidder for the fleet of submarines in 2016 ahead of offers from Japan and Germany.

The first of the new submarines is scheduled to be delivered in the early 2030s and the final vessel during the 2050s.

To read the full Naval Group media release, click here.