The Minister for Defence Industry and the Minister for Defence have announced today the next significant step in the building of Australia’s Future Submarines with the signing of the contract between the Government and DCNS to commence the design phase of the Program.

Minister for Defence Industry Christopher Pyne said the signing of the Design and Mobilisation contract today with DCNS was ahead of schedule and not only represented another significant step along the path to developing a regionally superior Future Submarine but also was good news for Australian Defence industry.

“The signing ahead of schedule of the Design and Mobilisation Contract with DCNS demonstrates the Turnbull Government's commitment to ensuring the project is on track and that planning and preparations at each step are consistently thorough.

“Mobilisation and design activities will mark the start of the Future Submarine Program, with work also commencing to maximise Australian industry involvement and early planning for the construction of the Submarines in Australia.”

"The timely start of design and robust planning for each phase of the Future Submarine Program are essential to success and for the benefits to start flowing to the Australian economy.

"Involvement of Australian industry in the Future Submarine Program is of vital importance to the construction and sustainment of the submarine fleet into the future, creating job opportunities across Australia.

Alongside construction of the future submarines in Adelaide, there is other highly technical work to be conducted in Australia. This will include the integration and testing of submarine systems, including the propulsion and combat systems for the submarines.”

Minister for Defence Marise Payne said that the start of design marks a significant milestone in the development of regionally superior Future Submarine capability for Australia.

“The design phase will enable Australia, in partnership with DCNS and Lockheed Martin Australia, to design a submarine that meets our unique capability requirements, which include superior stealth and sensor performance,’’ Minister Payne said.

Hervé Guillou, DCNS chairman and CEO, stated that DCNS is looking forward to a strategic and sustainable partnership with the Commonwealth of Australia, Lockheed Martin and Australian Industry. “This is a significant step forward in the Program. This contract will allow DCNS to commence the initial phase of Australia’s Future Submarine," he said.

The two Ministers have also announced today that Lockheed Martin Australia has been selected as the preferred Combat System Integrator for the program, subject to further discussion on commercial matters.

“Lockheed Martin Australia will be our Combat System Integrator to partner with Defence and DCNS to design and integrate the combat system of our Future Submarine, which meets our unique capability requirements,” Minister Payne 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 US technology, while ensuring that our sensitive technology is protected.”

Minister Pyne said Lockheed Martin Australia intends to team with other Australian companies to provide the local engineering capacity needed to support the program.

“The 200 full time combat system integration jobs form part of around 2800 jobs associated with the broader Future Submarine Program.

Minister Pyne said Lockheed Martin Australia will draw upon expertise from Lockheed Martin Mission Systems and Training, and General Dynamics – Electric Boat, both of which are based in the US.

“Australian industry will be directly involved in the highly technical work of designing and integrating the combat system for the Future Submarine, further developing our own capability in this specialised area,” Minister Pyne said.

“Raytheon Australia will continue to provide critical in-service support for the Collins submarines,” Minister Payne said.