ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Aerospace & Defense

Australia's AUKUS submarine deal strikes blow to arms contractors

Small firms in scuttled contracts for French-made vessels face stormy future

SYDNEY -- Australia's cancellation of a 90 billion Australian dollars ($65.9 billion) submarine contract with France and shift to working with the U.S. and the U.K. to develop nuclear submarines has created problems for defense contractors abandoned by the move.

Lockheed Martin Australia, which was supposed to be in charge of the submarine's combat systems, is one that is being battered by Canberra's surprise move to scrap the 2016 contract with France's Naval Group for 12 diesel-powered submarines. Local companies could also be involved in the new program, but the outlook remains murky.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more