Japan beats rival for $10bn Aus deal
Mitsubishi Heavy Industries will build 11 Mogami-class frigates to replace the ANZAC-class fleet, which Australia has been operating since World War II.
Announcing the deal alongside Deputy Prime Minister Richard Marles, Defence Industry Minister Pat Conroy said the boats would create a 'bigger' and 'more lethal' Royal Australian Navy.
'Ladies and gentlemen, in terms of cost, capability, and meeting our schedule of delivery, the Mogami-class frigate was the clear winner,' Mr Conroy told reporters at Parliament House.
'The cost of acquisition of all three designs examined were comparable but, over the whole of life, the cost of the Mogami is much lower.
'The Mogami-class stealth frigate is in production right now.
'It was the only option that met the government's timeline of first frigate being delivered in 2029.'
While the first three ships will be built in Japan, the remainders will be built at Henderson Defence Precinct in Western Australia.
The 'continuous pipeline' plan will directly support an estimated 10,000 jobs.
The first of the three frigates is slated for delivery in 2029 and expected to enter service in 2030, while the third is expected to enter service by 2034.
It beats the former Coalition government's time frame to replace Australia's combatant fleet by four years.
With a range of up to 10,000 nautical miles, the new ships come with a 32 cell vertical launch system and surface-to-air and anti-ship missiles.
The 'next-generation vessel' is also compatible with Australia's other advanced defence gadgetry the Albanese government has ordered over the next decade.
The Japanese ship beat a design put forward by Germany's ThyssenKrupp Marine Systems.
Defence originally recommended the German MEKO A-200, mostly due to cost.
But Mr Marles, who is also defence minister, said the Mogami was simply the 'best ship'.
'The Mogami is absolutely the best ship,' he said.
'And that was very clear in all the advice that we received.'
Mr Conroy echoed his cabinet colleague and his earlier comments.
'On cost, capability and schedule, the Mogami was the clear winner on all three factors,' he said.
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