Lockheed Wins Contract to Install Weapons on Australian Submarines
30 September 2016 - 12:50AM
Dow Jones News
CANBERRA, Australia—Lockheed Martin Corp. has won a
multibillion-dollar contract to install combat systems in
Australia's next fleet of submarines, Australia's government said
Friday, beating out U.S. rival Raytheon Co.
Lockheed would work with French naval shipbuilder DCNS to supply
and install weapons and sensors for the new submarines, expected to
cost around 50 billion Australian dollars (US$38.46 billion) to
build and operate, Australian Defense Industry Minister Christopher
Pyne said.
"By partnering with an Australian-based company with strong
links to the United States we will ensure that we get the best
Australian and U.S. technology, while ensuring that our sensitive
technology is protected." Mr. Pyne said.
The Australian government said it couldn't offer a precise
estimate of the contract value. Estimates by strategic think tanks
and local media have varied between A$2 billion and A$4
billion.
Australia in April selected DCNS to supply 12 submarines, based
on a conventionally powered version of its new Barracuda
nuclear-attack vessel designed for France's navy.
But the leak of details about smaller DCNS-designed
Scorpene-class vessels being built for India prompted Australian
Prime Minister Malcolm Turnbull this month to seek assurances from
President Franç ois Hollande that France can guarantee security for
Australia's subs and their U.S. control systems.
Submarines are at the center of a small-scale arms race in Asia
as nations in the region try to hedge against uncertainty triggered
by China's growing military capabilities and territorial
assertiveness. The region will be home to half the world's
submarines and advanced combat aircraft within the next two
decades, military analysts say.
Australia's new 4,500-ton "Shortfin Barracuda" submarines—the
largest diesel-electric powered submarines ever built—will use
American combat systems similar to those on U.S. Navy nuclear
submarines and be fitted with stealth technologies including
pump-jet propulsion, previously used only on vessels operated by
the U.K., the U.S. and France.
Lockheed, the world's largest defense contractor by sales, will
integrate sensors, sonar, radar, navigation, imagery systems and
weapons into the new vessels, construction of which will begin in
the next decade.
Write to Rob Taylor at rob.taylor@wsj.com
(END) Dow Jones Newswires
September 29, 2016 10:35 ET (14:35 GMT)
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