Local subs build a win: Lobby group

Building 12 submarines in Adelaide will ensure Australia has an effective and sustainable defence capability, the Submarine Institute of Australia says.

The lobby group's executive director David Nicholls says local industry must be involved in adapting the French designed subs from start to finish.

"This latest decision sets a path which assists with ensuring a sustainable and effective submarine capability, which must be maintained during the transition from Collins-class submarines to the future submarines," he said on Tuesday.