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Cabinet officials

Japan Wins Lucrative Contract to Build Australian Warships Worth $6.5 Billion

Strategic Insights

— 1 min read

A Japanese company, Mitsubishi Heavy Industries, has won a lucrative contract to build a fleet of 11 Australian warships, with three vessels to be constructed in Japan and the remaining eight in Australia. This deal, worth 10 billion Australian dollars ($6.5 billion), is the largest defense industry agreement between Japan and Australia and marks a significant milestone for Japan's defense industry. The Japanese bid won out over a rival German company's proposal, citing factors such as cost, capability, and meeting Australia's schedule of delivery.

Key Takeaways:

  • The contract is worth 10 billion Australian dollars ($6.5 billion), making it the largest defense industry agreement between Japan and Australia.
  • Mitsubishi Heavy Industries will build three frigates in Japan, with the first scheduled to be operational in Australia in 2030.
  • The remaining eight frigates will be constructed in Australia, with a crew of 90 required for operation, compared to 170 needed for the ANZAC-class ships.
  • The Japanese bid was selected over a German company's proposal, citing factors such as cost, capability, and meeting Australia's schedule of delivery.
  • The frigates will have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles.
  • Japan's Defense Minister Gen Nakatani stated that the co-development of the frigate will allow the two countries to train and operate with the same equipment and improve operability and efficiency.
  • The Australian government has allocated AU$10 billion for the project over the next 10 years, part of a larger AU$55 billion budget for the navy's entire surface combatant fleet.

Statistics:

  • 10 billion Australian dollars ($6.5 billion) - the value of the contract
  • 11 vehicles - the number of frigates to be constructed
  • 2030 - the year the first frigate is scheduled to be operational in Australia
  • 10,000 nautical miles (18,520 kilometers) - the range of the frigates
  • 32 vertical launch cells - the number of missile launch cells on the frigates
  • 90 crew members - the number required for operation of the frigates
  • AU$10 billion - the allocated budget for the project over 10 years
  • AU$55 billion - the total budget for the navy's surface combatant fleet

Sources:

  • The Associated Press
  • Mari Yamaguchi (Associated Press writer from Tokyo)
  • Associated Press writer ( credited for the story)
  • The original source for the content

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