Japan ready to build subs in SA: Xenophon

Independent senator Nick Xenophon believes Japanese shipbuilders are "ready, willing and able" to build submarines in Australia.

Senator Xenophon, just back from a trip to Japan where he visited a number of companies in his campaign to get new submarines built in Australia, is encouraged that Mitsubishi Industries is looking at opening up an office in South Australia.

But he told ABC television on Sunday the problem is that the federal government with its so-called "competitive evaluation process" specifies three choices - an overseas build, a hybrid build or a local build - when "they really need to specify just a local build".