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News Wire / economy

US Submarine Production Must Increase For Australia Pact

ABC NewsRadio AU Washington D.C. 14d14d Impact 5
Australia has committed $3 billion to increase United States shipbuilding capacity, a move viewed with admiration by the White House. Former Prime Minister Malcolm Turnbull suggested the financial contribution may need to increase as the enterprise unfolds. He noted the $3 billion figure was part of an optimal pathway but indicated there may be a rationale for further participation. The United States must build an average of 2.3 submarines per year to meet obligations under the AUKUS deal. Current production rates are estimated at 1.1 submarines per year. Democratic Congressman Joe Courtney stated he is confident the U.S. will meet delivery deadlines by 2032. The production increase is required to compensate for ships being handed over to Australia.

Topics

shipbuilding defense industry foreign investment

Developing

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Sources · 7 independent

ABC NewsRadio AU

“Australia's $3 billion commitment to increase the United States shipbuilding capacity is viewed with admiration from the White House. But speaking to 730, he acknowledged Australia's financial contribution may need to increase.”

ABC NewsRadio AU

“The US will need to build an average of 2.3 submarines a year to compensate for ships to be handed over to Australia. They're currently only building 1.1 a year.”

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