Australia has reportedly welcomed a Japanese offer to jointly-build a fleet of new submarines, with a possible deal by the end of the year.
Japan has proposed to help build the submarines instead of exporting a new fleet following concerns in Canberra over the effect on the local shipbuilding industry, media reports said.
Under the proposal, Japan's defence ministry is to co-operate with Australia in developing special steel and other materials for its new submarines, while Tokyo will be in charge of assembling them, the Mainichi Shimbun newspaper said.
The Australian side has taken "a positive stance" on the proposal, the report said, adding the two countries may strike a deal by the end of 2015.
Australia needs to replace its fleet of diesel and electric-powered subs, which date from the 1990s, and Japan's high-tech ship-building industry is thought to be well-placed to win the contract.
But the federal opposition and industry groups protest that losing the contract could deal a potentially fatal blow to naval shipbuilding at home, with a knock-on effect for associated industries.
However, critics point out that Japan may be able to supply the fleet for as little as half of the cost of making it at home.
Mr Andrews was unavailable for comment while overseas accompanying Prime Minister Tony Abbott in Iraq.
The Department of Defence is expected to issue a statement on Tuesday.
Share
