French PM says all Australian submarines to be built in Australia

An employee looks at the propeller of a Scorpen submarine at the industrial site of the naval defence company and shipbuilder DCNS in La Montagne near Nantes, France, April 26, 2016. REUTERS/Stephane Mahe

CANBERRA (Reuters) - French Prime Minister Manuel Valls said on Monday he was committed to building all of a new Australian submarine fleet in Australia, apparently contradicting the French contractor who said last week the deal would create jobs in France.

Valls stopped off in Australia while headed to New Zealand for a scheduled visit, just days after Prime Minister Malcolm Turnbull said France had beaten out Japan and Germany for the A$50 billion (£26.01 billion) contract.