Naval- Group and the federal government have locked in a commitment for a local spend of at least 60 per cent in the construction of Australia's new fleet of submarines.
The company said on Tuesday the commitment had been included in the program's Strategic Partnering Agreement related to the contract for the 12 Attack Class subs.
Naval Group global Chief Executive Pierre Eric Pommellet visited Australia last month for talks with commonwealth officials on a range of issues including the 60 per cent local spend.
"Naval Group is fully committed to supporting the development of Australia's sovereign submarine capability," Mr Pommellet said in a statement.
"I have been very impressed by the existing capacity of Australia's manufacturing sector, and its enthusiasm for the Attack Class project.
"This program will deliver to the Royal Australian Navy 12 regionally-superior submarines which are specially designed for Australia's unique conditions.
"But it will also create a new and sovereign submarine building industry in Australia."
Naval Group Australia Chief Executive John Davis said his staff were already working with hundreds of local businesses to build greater self-reliance and sovereignty in the Australian defence manufacturing sectors.
"There will be increasing levels of local content in each of the 12 Attack Class submarines, as we continue working with local businesses to boost Australia's sovereign capability," Mr Davis said.
"Ensuring that at least 60 per cent of the Attack Class contract value is spent locally will create hundreds of Australian jobs, for the long term, in new supply chains around the country."
Naval Group Australia said it had already created almost 300 direct jobs in Australia and plans to double its local workforce in 2021 in preparation for the building of a hull qualification section at Osborne in Adelaide in 2023, and construction of the first pressure hull in 2024.
More than 120 companies in Australia have registered their interest with Naval Group to become tier-one capability partners and build major parts for the submarines.