Prime Minister Malcolm Turnbull went to Adelaide to announce which country would get the nod to build Australia's next generation of submarines:  French company DCNS has won the $50 Billion contract. 

"Over decades to come, the submarine project alone will see Australian workers building Australian submarines with Australian steel here, where we stand today, for decades into the future," Mr. Turnbull said.  "Fifty years from now, submarines will be sustained (and) built here.  Surface vessels will be built here because of the commitment we have made to this great national endeavour of building Australia's navy of the 21st century."

Japan and Germany also submitted bids for the contract.  But in the end the government chose DCNS to build a scaled-down version of its Barracuda-class vessel, replacing the nuclear power plant with a diesel-electric design.  There were also concerns about Japan's lack of experience in building sophisticated military hardware. 

The twelve replacements for Australia's Collins-class subs will be built in Adelaide, creating 2,800 jobs.  And many of the parts will be made locally.

"There will be obviously a supply chain, which will include other parts of Australia," Malcolm said.  "But as with every project there are contractors across the country and indeed there will be components that will be sourced."