Australia closer to having its fleet of nuclear subs

Officials from Australia, UK and US at Osborne naval shipyard

Australia is set to provide 4.6 billion Australian dollars ($3 billion) to British industry to support the construction of nuclear-powered submarines and ensure its new fleet arrives on time, officials said Friday.

The announcement came a day after the two countries signed a defense and security pact to better meet challenges such as China's increased activity in the South China Sea and South Pacific. UK Defense Minister Grant Shapps said the submarine program was necessary.

"Countries need to invest in making sure that adversaries see we are serious about our security," Shapps said.

The deal will boost capacity at the Rolls-Royce factory in UK to build nuclear reactors to propel the submarines.

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