Japanese company wins $10 billion deal to build new Australian warships

A Japanese multinational will build $10 billion worth of new warships for the Royal Australian Navy, the federal government announced today.

Mitsubishi Heavy Industries edged out German company TKM to secure the deal, a decision made months ahead of schedule.

The Japanese company's advanced Mogami frigates will replace the navy's ageing Anzac-class vessels over the coming years.

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The latest Mogami-class frigate can operate at a range of up to 10,000 nautical miles, and is armed with surface-to-air missiles, anti-ship missiles and underwater warfare systems.

The government ordered the first three of the new warships to be built overseas in order to secure a speedier delivery.

They are scheduled to hit Australian waters by 2029 before becoming operational one year later.

Most of the other frigates will be built in Perth.

Defence Minister Richard Marles says the new warships are part of the government's plan to more than double the size of the navy's surface combat fleet.

"The upgraded Mogami-class frigate will help secure our maritime trade routes and our northern approaches as part of a larger and more lethal naval surface combatant fleet," he said.

Defence Industry Minister Pat Conroy said they offer the navy increased firepower.

"It will take our general purpose frigates from being able to fire 32 air defence missiles to 128 missiles, giving our sailors the cutting‑edge weapons and combat systems they need to prevail in an increasingly complex environment."