defense contracts

ThyssenKrupp Vies for Deal Down Under

U 36-dpa
Hunting grounds below the surface.
  • Why it matters

    Why it matters

    Germany is presenting itself as the neutral option in the fight for Australia’s submarine contract, saying that awarding the contract to Japan could exacerbate regional tensions with China.

  • Facts


    • The Royal Australian Navy will spend the equivalent of about €60 billion over the next 20 years to modernize its fleet.
    • The German shipyard division ThyssenKrupp Marine Systems will bid against Japan and France for the construction of both submarine and surface vessels.
    • Political factors will ultimately play a large role in who gets the contracts.
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German engineering giant ThyssenKrupp is bidding for what could be the biggest contract in the company’s history.

But the 200-year-old firm, which merged two of Germany’s biggest steel and heavy armaments manufacturers, has a bidding war ahead of it against the Japanese and the French before it wins the contract, worth an estimated €35 billion.

The Japanese aren’t shy about demonstrating their technological prowess and are already planning a preemptive strike. They’re sending a state of the art Soryu class submarine and two warships to Australian waters next month, for a sub-hunting exercise in conjunction with the Australian Navy.

“It’ll be interesting to see how the French and the Germans react,” said Malcolm Davis of the Australian Strategic Policy Institute, a military think-tank.

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