(MENAFN- Kuwait News Agency (KUNA)) KUALA LUMPUR, Aug 5 (KUNA) -- The Australian government on Tuesday announced that it has struck a historic defense contract with Japan's Mitsubishi Heavy Industries to build 11 Mogami-class warships for the Royal Australian Navy, in a deal initially valued at 10 billion Australian dollars (approximately USD 6.5 billion).
Australian Defense Minister Richard Marles, speaking at a press conference in Canberra and cited by the Australian Broadcasting Corporation (ABC), said the agreement represents the largest maritime defense deal ever signed between Australia and Japan.
Mitsubishi won the contract over Germany's Thyssenkrupp Marine Systems, which had proposed its MEKO A-200 frigate.
Marles noted that the new fleet will replace the aging Anzac-class ships.
Under the agreement, three frigates will be built in Japan, while the remaining eight will be constructed in Western Australia. The first ship is expected to enter service by 2030.
Australian Defense Industry Minister, Pat Conroy described the Mogami-class as the clear winner based on assessments of cost, capability, and schedule compliance.
He said that Japan has allocated three dedicated production sites to support Australia's order, ensuring delivery within the planned timeframe.
He further added that the precise unit cost of each frigate has yet to be finalized due to ongoing commercial negotiations with Mitsubishi and the Japanese government.
Japan's government formed a joint public-private task force to support its bid, following its 2016 loss of an Australian submarine contract to France. Local reports indicated that the United States provided implicit support for the Japanese offer, viewing it as a step toward strengthening Western alliances in the Indo-Pacific.
The deal aligns with Australia's 2023 defense restructuring plan, aimed at bolstering naval deterrence and expanding its warship fleet from 11 to 26 vessels over the next decade, amid rising tensions in the South China Sea. (end)
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