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Australia chooses US defence giant for submarine combat systems

Lockheed Martin beat out US rival Raytheon to win the contract to fit out the Aus$50 billion French-designed submarines

Canberra has chosen US defence contractor Lockheed Martin as the combat system integrator for its new fleet of 12 French-designed submarines.

The Australian arm of the American defence giant defeated US rival Raytheon to win the contract to fit out the Aus$50 billion (US$38 billion) vessels.

The contract will cover systems including sonar and torpedoes.

"By partnering with an Australian-based company with strong links to the US, we will ensure that we get the best Australian and US technology, while ensuring that our sensitive technology is protected," Defence Minister Marise Payne and Defence Industry Minister Christopher Pyne said in a statement Thursday.

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The defence ministry did not provide any costings for the combat system contract.

Australia awarded French contractor DCNS the contract last April to design and build its next generation of submarines.

The submarines are a scaled-down, conventionally powered version of France's 4,700-tonne Barracuda.

The combat systems will be fitted to the submarines in Adelaide in partnership with Australia's Department of Defence and DCNS.

"Lockheed Martin Australia?s involvement in the Future Submarine Program is likely to create around 200 skilled Australian jobs during the design and build phases of the program," Pyne said.

A total of around 2,800 jobs will be linked to the overall submarine programme.

France's Minister of Defence, Jean-Yves Le Drian, and the boss of DCNS both welcomed the decision.

Herve Guillou, DCNS CEO, said: "DCNS is looking forward to a strategic and sustainable partnership with the Commonwealth of Australia, Lockheed Martin and Australian industry."

He added: "DCNS is committed to ensuring that Australia has a regionally superior submarine constructed in Adelaide and develops a sovereign naval industry."