Canberra: The Australian government on Tuesday announced a groundbreaking defense contract with Japan's Mitsubishi Heavy Industries to construct 11 Mogami-class warships for the Royal Australian Navy. This deal, initially valued at 10 billion Australian dollars (approximately USD 6.5 billion), marks a significant milestone in the defense collaboration between the two nations.
According to Kuwait News Agency, Australian Defense Minister Richard Marles, during a press conference in Canberra, emphasized the magnitude of the agreement, describing it as the largest maritime defense deal ever signed between Australia and Japan. Mitsubishi secured the contract over Germany's Thyssenkrupp Marine Systems, which had proposed the MEKO A-200 frigate.
Minister Marles highlighted that the new fleet is set to replace the aging Anzac-class ships. Under the terms of the agreement, three of the frigates will be constructed in Japan, while the remaining eight will be built in Western Australia. The first of these ships is anticipated to enter service by 2030.
Australian Defense Industry Minister, Pat Conroy, pointed out that the Mogami-class was the clear choice based on evaluations of cost, capability, and adherence to the schedule. He noted Japan's commitment to allocate three dedicated production sites to facilitate Australia's order, ensuring timely delivery.
Conroy also mentioned that the precise unit cost of each frigate is still under negotiation due to ongoing commercial discussions with Mitsubishi and the Japanese government. Japan's government, having previously lost an Australian submarine contract to France in 2016, formed a joint public-private task force to support its bid. Local reports suggest that the United States provided implicit support for the Japanese offer, seeing it as a move to strengthen Western alliances in the Indo-Pacific region.
The deal is in line with Australia's 2023 defense restructuring plan, which aims to enhance naval deterrence and expand its warship fleet from 11 to 26 vessels over the next decade, amidst escalating tensions in the South China Sea.