U.S. defence contractor Lockheed Martin will supply the combat systems for Australia's new fleet of 12 French submarines, Defense Industry Minister Christopher Pyne said Friday. The Australian arm of the American defense giant defeated U.S. rival Raytheon in a deal to fit out the Au$50 billion ($38 billion) vessels."Lockheed Martin have won the tender for the combat system integrator role with the submarines," Pyne told reporters, adding that it was worth Au$1.4 billion dollars. Australia awarded French contractor DCNS the main contract last April to design and build its next generation of submarines. The vessels will be a scaled-down, conventionally powered version of France's 4,700-ton nuclear-fueled Barracuda.

Australia had also now agreed with DCNS to launch design and mobilization work with a team heading to Cherbourg, France, while DNCS will boost its presence in Adelaide where the subs will be built.