Submarine Proliferation

France Export Behavior

Capabilities | Import | Export

Construction of Agosta
submarines in Pakistan
Source:
Pakistani Navy Website, www.paknavy.gov.pk/
ship%20const/90-B/90B.htm

Direction des Constructions Navales (DCN)

The French company DCN is the prime naval shipyard for the French Navy, supplying the entire range of conventional and nuclear-propelled submarines and surface vessels, as well as maintenance and integrated logistical support. In addition, the company offers integrated command and control and combat systems for its vessels in cooperation with Thales Naval France.[1,2] However, France does not currently allow the sale of nuclear-propelled submarines.[3]

DCN currently offers two submarines for export:

The Agosta 90B-class: diesel-electric submarines, with an option to include an air-independent propulsion (AIP) system;
The Scorpène-class: diesel-electric submarines, jointly developed with Spain's Izar Shipyard, are offered in three versions:
- Scorpène Basic without an AIP system;
- Scorpène Basic-AIP with an AIP system as the secondary power source;
- Scorpène Compact with an AIP system as the primary power source. Scorpène Compact is a shortened version of Scorpène Basic, and is designed for use in littoral waters. The use of AIP enables the boat to avoid the danger of snorkeling in coastal waters.

The company's AIP system, MESMA (Module d'Energie Sous-Marin Autonome), is based on a closed-cycle steam turbine. This power plant can also be retrofitted via a plug-in extension during a major overhaul, providing a significant qualitative upgrade to the boat.[4] The first vessel equipped with MESMA will be the Pakistani Navy's Hamza, an Agosta 90B-class boat, license-built in Karachi, Pakistan.[5]

In 2002, DCN and Thales started cooperating on the export of their products via the joint enterprise Armaris. Aside from exports, Armaris is also intended to facilitate participation in international procurement programs.[6] Initially, DCN was marketing its vessels through Sofrantem, which DCN created in 1970; since 1991, marketing has been done by DCN International (DCNI). The formerly state-owned enterprise was unable to work abroad directly, and therefore established subsidiaries abroad. DCNI in turn established DCN Log to provide maintenance and integrated logistical support.[7,8]

While Sofrantem's main responsibility was related to the financing of DCN's international sales, the establishment of DCNI represented an increased commitment to exports, reflecting the shipyard's need to sustain its capabilities despite decreasing orders from the French Navy.[9] The French Navy continues to be DCN's main focus; the navy, in its turn, actively promotes the company during visits to foreign navies and through cooperation with NAVFCO (Société Navale de Formation et de Conseil), a private company that provides tactical and basic on-shore and on-board training to future crews of foreign navies.[10,11,12,13]

Given the decrease in French Navy orders, fierce international competition for naval contracts, and limited success with civilian orders, DCN has increasingly been interested in pursuing alliances both within France and Europe. An attempted acquisition of Howaldtswerke-Deutsche Werft (HDW), its main European competitor in the submarine sector, failed in 2003, as HDW's owner regarded DCN's offer at that time as insufficient.[14,15] DCN's recent partial privatization (approved by the French Parliament in December 2004), however, has removed some of the obstacles to mergers and international cooperation.[12,16,17] While the French government will retain a majority in the shipyard, DCN affiliates with fewer than 250 staff and a revenue of under $498 million could be privately held.[17] DCN is expected to move forward with plans to merge with Thales Naval France, further consolidating European naval yards.[18] DCN and Thales have cooperated with the Spanish shipyard Izar in submarine construction.

While DCN's new status may facilitate international cooperation and acquisitions, French government subsidies could become increasingly difficult to administer. For example, a French Court of Auditors detailed in its reports how DCN was able to sell submarines to Pakistan below cost, recouping its losses by overcharging the French Navy for its domestic orders.[16] DCN's actions were likely an attempt to jumpstart its export business. Without its sales to Pakistan, DCN might have shared the fate of Dutch submarine builder Rotterdamsche Droogdok Maatschappij Submarines B.V. (RDM), which has been unable able to sell its vessels for more than a decade, severely affecting its future viability.

In contrast, DCN has had considerable success reviving old markets and opening new ones in the past decade. In 1994, it won contracts for three Agosta 90B units with a new, untested AIP system to Pakistan. Three years later, the company contracted to sell two vessels of its new Scorpène-class to Chile. Not only was DCN able to break into HDW's market (Chile had been employing German Type 209 boats), but, more importantly, the French company was able to sell a new submarine design, even though the Chilean Navy had initially issued the tender for a proven submarine class.[9] In 2002, Malaysia ordered two Scorpène units as well, along with an ex-French Navy Agosta boat for training purposes.[19] Should potential future deals with Brazil or Singapore materialize, this would represent a significant setback for HDW, as these navies have been customers of German and Swedish shipyards.

However, DCN has also experienced some setbacks of late. In 2001, Armaris completed negotiations on a contract with India for the licensed production of six Scorpène-vessels at the Mazagon Shipyard in Mumbai, with an option for an additional six. Armaris has also offered to help make design and structural changes to the Scorpène in the future, in addition to full technology transfer. However, the contract has yet to be signed; in early 2004 Indian sources indicated the delay was due to upcoming, mid-2004 elections, since that time, rising costs have been cited. In August 2005, India's Cabinet Committee on Security said that it wanted DCN to waive a clause whereby India has to pay a penalty of 20 million rupees (about $460,000) for each day of delay since the completion of contract negotiations (totaling some $230 million by August 2005). Indian Defense Ministry Pranab Mukherjee has suggested that unless the clause is revised, the contact may be renegotiated. Indeed, Thyssenkrupp Marine System's HDW has submitted a proposal, together with Russian enterprises, to supply India with Type 214 AIP boats.[20]

Some allege that the modular construction of the Scorpène would allow for the installation of a nuclear propulsion system.[21] It is unclear to what extent DCN might be involved in such an adaptation. France has never exported nuclear propulsion systems.[3] However, as India has been pursuing this capability independently for years, DCN may only be providing implementation assistance without a direct sale of a complete reactor. The French Navy operates the world's smallest nuclear submarine class, Le Rubis. With a submerged displacement of 2,680 tons, it is not significantly larger than a Scorpène-class boat of up to 2,000 tons.[22] The latter with its modular design could potentially incorporate a small reactor with a design similar to the one used in Le Rubis.

Agosta 90B
Displacement, tons:	1,510 surfaced 1,760 submerged (1,960 with MESMA)
Dimensions, ft (m):	221.7×22.3×17.7 (67.6×6.8×5.4)
Main machinery:	Hybrid diesel-electric/MESMA AIP
Speed, knots:	12 surfaced 20 submerged
Range, miles:	8,500 at 9kt snorting; 350 at 3.5kt submerged, quadrupled at 4kt with MESMA
Complement:	36 (7 officers)
Diving depth, ft (m):	1,050 (320)
Endurance:	68 days
Weapons:	4 SSMs and 16 torpedoes; four 21in (533mm) tubes; mines in lieu of torpedoes
Sources: Stephen Saunders, Jane's Fighting Ships 2002-2003 (Coulsdon: Jane's Information Group, 2003). A.D. Baker, Combat Fleets of the World, p. 537. David Miller, The Illustrated Directory of Submarines of the World (St. Paul: MBI Publishing Company, 2002), pp. 248-249. Pakistani Navy Website, http://paknavy.gov.pk/FLEET/MAIN PAGE.htm

Scorpène

	Scorpène Basic	Scorpène Basic-AIP	Scorpène Compact
Displacement, metric tons:	1,700	2,000	1,450
Length:	66.4 meters	76.2 meters	59.4 meters
Main machinery:	diesel-electric	diesel electric with secondary AIP system	MESMA AIP with secondary diesel-electric set
Speed, knots:	> 20 submerged	> 20 submerged	> 14 submerged
Complement:	30	30	22
Diving depth	> 300 meters	> 300 meters	> 200 meters
Endurance:	50 days	50 days	50 days

Sources:
"Attack Submarines," DCN Website, http://www.dcn.fr/us/produits/sous_marin_attaque.htm.
"The SSK Scorpene Class Submarine," http://www.naval-technology.com/projects/scorpene/scorpene1.html.
"Scorpène," Global Security Website,http://www.globalsecurity.org/military/world/europe/scorpene.htm.

FRENCH SUBMARINE EXPORTS
Country	Type -Class	Shipyard	Year of Order	Number ordered	As Boats	As Material Kits	Comments
Portugal	Daphné	Dubigeon, Nantes	*laid down 1965-67	3	3
Spain	Agosta		1966	4		4	Built by E.N. Bazán, Cartagena, with French assistance
South Africa	Daphné	Dubigeon, Nantes	1967	4	4
Pakistan	Daphné	S131 Hangor built at Naval Arsenal, Brest; S132 Shushuk and S133 Mangro built at C.N. Ciotat, Le Trait	*laid down 1967-68	3	3
Spain	Agosta		1975	2		2	Built by E.N. Bazán, Cartagena, with French assistance
Pakistan	Daphné	Dubigeon, Nantes	1975	1	1		Pakistan purchased 1 second-hand from Portugal, originally entered service in 1969
Spain	Agosta		1977	2		2	Built by E.N. Bazán, Cartagena, with French assistance
Pakistan	Agosta	Dubigeon, Nantes	1978	2	2		Originally ordered by South Africa.
Pakistan	Agosta B	DCNI	1994	3	1	2
Chile	Scorpène	DCN, Izar (Spain)	1997	2	1	1
Malaysia	Scorpène	DCN, Izar (Spain)	2002	2	1	1
India	Scorpène	DCN, Thales	expected 2005	6		6
TOTAL EXPORTED				34	16	18
Sources: A.D. Baker III, "Combat Fleets of the World 2000-2001," Annapolis: U.S. Naval Institute, 2000. DCN Website. Rahul Bedi, "India to Renegotiate Scorpene-class Submarine Contract," Jane’s Defence Weekly online edition, http://jdw.janes.com, August 17, 2005. "Product portfolio," DCN Website, http://www.dcn.fr/us/produits.

Sources:
[1] "Product portfolio," DCN Website, http://www.dcn.fr/us/produits.
[2] "Through-life support, submarines," Service Portfolio, DCN Website, http://www.dcn.fr.
[3] Jacques Isnard, "A French submarine is heading to Asia for six months on an export mission - the odyssey of La Praya in Southeast Asia," Le Monde, October 21, 1997; in "Submarine heading to Asia to promote French technology," FBIS Document FTS19971021000889.
[4] "Attack submarines," DCN Website, http://www.dcn.fr.
[5] "First Mesma AIP passes acceptance tests," Media Press Releases, DCN Website, http://www.dcn.fr.
[6] "Armaris," Thales Group Website, http://www.thales-naval.com/activities/warship/body-armaris.htm.
[7] "History," DCN Website, http://www.dcn.fr/us/entreprise/histoire.html.
[8] "DCN Log," Naval Forces, 1999, Vol. 20, No. 1, pp.78; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.
[9] "The Naval Shipbuilding Directorate (DCN)," Military Technology, August 1998, Vol. 22, No. 8, pp. S26-28; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.
[10] Jaques Isnard, "France arms against 'proliferating' regional powers," Le Monde online edition, http://www.lemonde.fr, November 8, 2003; in "France updating nuclear deterrent to face 'proliferating' states," FBIS Document EUP20031110000225.
[11] Joris Janssen Lok, "French submarine export efforts are gathering speed," International Defense Review online edition, April 1, 2002; http://idr.janes.com.
[12] Jean-Loup Picard, "The French naval armaments industry," Naval Forces, 2002, Vol. 23, No. 5, pp. 38-46; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.
[13] Alain Vignat, "Training of foreign naval military engineers: a strategic stake," Naval Forces, 2002, Vol. 23, No. 5, pp. 56-59; in ProQuest Information and Learning Company, http://proquest.umi.com/pqdweb.
[14] J.A.C. Lewis and David Mulholland, "Thales, DCN mull HDW buy," Jane’s Defence Weekly online edition, http://jdw.janes.com, July 16, 2003.
[15] Kirsten Bialdiga and Gerhard Hegmann, "US-Investor bleibt bei HDW im Boot," Financial Times Deutschland online edition, http://www.ftd.de, October 16, 2003.
[16] "French Defense Industry Forecast," Jane's Website, http://www.janes.com, December 1, 1998.
[17] J. A. C. Lewis, "Paris Approved Part Privatisation of DCN," Jane’s Defence Weekly online edition, http://jdw.janes.com, December 22, 2004.
[18] Joris Lok, "Jean-Georges Malcor - Senior Vice President, Thales Naval Division," Jane’s Defence Weekly online edition, http://jdw.janes.com, May 4, 2005.
[19] "Malaysia acquires Scorpene submarines," DCN Website, http://www.dcn.fr.
[20] Rahul Bedi, "India to Renegotiate Scorpene-class Submarine Contract," Jane’s Defence Weekly online edition, http://jdw.janes.com, August 17, 2005.
[21] "French submarine maker sees India contract signed soon," Agence France Presse, December 12, 2003; in Lexis-Nexis Academic Universe, http://web.lexis-nexis.com.
[22] "Sous-marin nucleaire d'attaque type Rubis," French Defense Ministry Website, http://www.defense.gouv.fr/navires/fichnav/sna_ru-2.htm.

This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2007 by MIIS.