Germany 'disappointed' by subs loss

German shipbuilder ThyssenKrupp Marine Systems says it's disappointed with the Commonwealth's decision to go with French shipbuilders for its new subs.

The German shipbuilder which failed to win the contract for Australia's next fleet of submarines is disappointed but respects a decision to go with the French.

The 12 subs, worth $50 billion, will be built by DCNS at Adelaide's ASC shipyard. The project will use Australian steel and create 2800 jobs.

"The competitive evaluation was conducted with high integrity and professionalism and we were privileged to be part of it," ThyssenKrupp Marine Systems' Australian chairman John White said after the announcement on Tuesday.

"We are naturally disappointed but we stand ready to provide support for Australia's Future Submarines project with our unrivalled experience, leading technology and track record."

The French will build a Shortfin Barracuda submarine designed specifically for the Australian navy.

The Germans were pushing for a 89-metre Type 216 while a Japanese consortium proposed a longer version of the Soryu Class submarine.

Prime Minister Malcolm Turnbull, speaking at ASC's Osborne shipyard, said the decision reflected a "momentous national endeavour".

He also said the French offer represented the capabilities best able to meet Australia's unique needs.

"This is a great day for our navy, a great day for Australia's 21st century economy, a great day for the jobs of the future," Mr Turnbull said.

He also thanked ThyssenKrupp Marine Systems and the Japanese government for their "high quality" bids.


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Source: AAP



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