Subs can be built in Australia: minister

Leading French and German defence manufacturers can build submarines in Australia, on budget and on time, South Australian Trade Minister Martin Hamilton-Smith says.

The minister says European defence producers have reinforced their desire to expand their interests in Australia.

They just need a clear commitment from the federal government on the future of naval shipbuilding, he says.

"It is apparent that a successful shipbuilding future for Australia is possible," Mr Hamilton-Smith told state parliament on Wednesday.

"It will require a continuous build of submarines and frigates in Australian shipyards, by Australian workers and Australian businesses based predominantly in Adelaide."

The minister recently visited both German manufacturer TKMS and French producer DCNS.

TKMS indicated it could build an evolved Type 216 submarine in Australia while DCNS said it could build a conventional version of its Barracuda Class submarine.

"Both companies have proposed plans for an in-country build for Australia's future submarines as international design partners," Mr Hamilton-Smith said.