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Japan Times
3 days ago
- Business
- Japan Times
The Japan-Australia frigate deal is more than a weapons pact
Australia's decision to purchase Japanese vessels to modernize its navy is a huge step forward for Japan's defense industry and the bilateral relationship. It has the potential to transform the nation's status as a regional security provider. The deal is not without risks, however. The scale of the agreement is sweeping. Japan has never before won a bid this size, nor of this significance. It not only demands the very best of this country's engineers and manufacturers but requires that those capabilities be transferred to Australia. Ultimately, the deal is central to its national security. It is a huge vote of confidence in this country. Japan must not disappoint. Project Sea 3000 is a decade-long program that will entail the purchase and construction of 11 frigates. These ships, designed to hunt and attack surface ships and submarines and provide air defense, will protect the sea lines of communication and trade routes that are vital to Australia's economy and national security. The new vessels are central to Australia's plans to modernize its surface fleet, which is expected to double in size: There are currently 10 ANZAC-class warships and one is set to be retired in the next year. Another modernization effort, the Hunter-class warship, is behind schedule and over budget. Five companies contested the bid. Two survived a culling in November — Japan's Mitsubishi Heavy Industries (MHI) and Thyssenkrupp Marine Systems (TKMS) from Germany. MHI proposed modifying its Mogami-class frigate and was selected because it was, said Australian Defense Minister Richard Marles, 'best able to quickly meet the capability requirements and strategic needs of the Australian Defence Force.' Selection of MHI is only the first step in the procurement process. The two countries must next conclude binding commercial contracts with MHI and the Japanese government to wrap up the 10 billion Australian dollars ($6.5 billion) project. Those talks, which will address the final price — the initial figure only includes purchase of the first three ships and parts of additional vessels — along with repair and maintenance of the ships and the transfer of production to Australia, are expected to be completed next year. Australian officials emphasized the need for speed. With one ship scheduled for decommissioning and several others already suffering from overuse, new vessels are urgently required. In response, MHI proposed that the first three ships be constructed in Japan and then shift manufacturing to Perth in Western Australia, where they will be built by Austral, an Australian company. To ensure that delivery date, MHI has reportedly already allocated three production slots for the Australian warships in its production line. This is much more than just a military sale. The deal is a vote of confidence, 'a testament to the trust in Japan's advanced technological capabilities and the importance of interoperability between the Self-Defense Forces and the Australian military,' said Defense Minister Gen Nakatani. It is confirmation of shared commitment to deepening ties between the two countries, he added, and 'a significant step toward further enhancing security cooperation.' Marles agreed, noting that 'There is no country in the world with whom we have a greater strategic alignment, and that is being reflected in a really blossoming defense relationship.' The U.S. is a part of that relationship as well. The intensifying security partnership between Tokyo and Canberra aims to complement each country's alliance with the United States. The Mogami is designed to be interoperable with U.S partners, creating efficiencies in both operations and repairs. Experts anticipate that the current cooperation between Japan and the U.S. will make it easier to put vital American equipment and systems on the frigate. It's a huge boost to Japan's defense industry. Japan has never concluded a big defense sale; it sold a radar system to the Philippines last year, but nothing like a warship. Japan was expected to sell submarines to Australia nine years ago, but the French ultimately won that contest. This success is said by some to have 'exorcised the ghosts' of that failure. Success will help change international perceptions of Japan's ability to compete. Japan has sought a more significant role as a provider of defense equipment, lifting in 2014 long-held constraints on international arms sales to do so. That was not enough to change deeply ingrained habits and behaviors, however. The Australian bid has forced change on Japan. It obliged MHI and the government to work together in new ways to market products and negotiate deals. Fulfilling contracts will change economies of scale, making Japanese products more competitive still. Reportedly, Japan is already trying to sell the ship to Indonesia. Ultimately, however, the test is the provision of the warships, and that is not guaranteed even though the Mogami-class has been in service since 2022 and MHI has already built 11 of the warships, delivering two a year to the MSDF. The Australia deal requires a new frigate, however, one that is a considerable upgrade from the current Mogami-class vessel. It will be larger, with upgraded radar and sonar systems and double the current 16 vertical launching system cells. It is designed to operate with about half the crew of most frigates, a key consideration as well, as it reduces operating and other long-term costs, which gave the MHI bid a boost in the competition. These are significant modifications, warn defense analysts. Another concern is the ability of MHI to transfer its manufacturing and overall production expertise to Australia after the first three ships are completed. Canberra has been forced to look to foreign suppliers because its domestic industrial base is weak. This has been a factor in both this deal as well as the submarine acquisition program now known as AUKUS, which includes the United Kingdom and the U.S. The delays and cost overruns of the Hunter-class development program are reminders of how powerful those constraints are. Upskilling Australian workers is essential to the success of both efforts. Japan has been successful in transferring its skills in other industrial sectors, such as automobiles, but that is no guarantee that the same will occur in other areas. Again, however, success in this endeavor will promote the broader partnership between Japan and Australia. It is tempting to see this new agreement as a defense deal, which it is — but it is also much more. The warship program consolidates and extends the Japan-Australia partnership. It confirms our two countries' shared values and reaffirms our determination to work together to promote regional peace and security. It is another step in an ongoing effort to shore up the regional order through economic, technological and security cooperation and a resounding signal that our futures are deeply intertwined. The Japan Times Editorial Board
Washington Post
6 days ago
- Business
- Washington Post
Australia selects Japan's Mitsubishi Heavy Industries for $6.5B warship deal
WELLINGTON, New Zealand — Australia said Tuesday it accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian warships, expected to be worth 10 billion Australian dollars ($6.5 billion). Mitsubishi Heavy Industries' Mogami-class frigate won the deal over rival Germany's MEKO A-200 from Thyssenkrupp Marine Systems. Japan's government lobbied heavily for the deal after missing out on Australia's submarines contract to a French company in 2016. 'This is clearly the biggest defense industry agreement that will ever have been struck between Japan and Australia,' Defense Minister Richard Marles told reporters when he announced the deal Tuesday. 'In fact, it's really one of the biggest defense exports that Japan has ever engaged in.' The fleet of 11 naval vessels will replace Australia's ageing fleet of ANZAC-class ships. Three of the frigates will be built in Japan, with the first scheduled to be operational Australia in 2030, and the remaining eight due for construction in Australia. Australian news outlets reported that the German company's bid had emphasized their vessel's cheaper price and their greater experience building ships abroad. But Pat Conroy, Australia's Minister for Defense Industry, said the Mogami-class frigate was a 'clear winner' when assessed by 'cost, capability and meeting our schedule of delivery.' The vessels have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles. The frigates can operate with a crew of 90, compared to the 170 needed to operate the ANZAC-class ships. Mitsubishi's win was a boon for Japan's defense industry, which has not built naval vessels abroad before. Japan, whose only treaty ally is the United States, considers Australia a semi-ally and has increasingly sought to deepen bilateral military cooperation amid ongoing regional tensions in the disputed South China Sea . 'We welcome the decision by the Australian government as a major step to further elevate Japan's national security cooperation with Australia, which is our special strategic partner,' Japan's Defense Minister Gen Nakatani said Tuesday. Nakatani said co-developing the frigate will allow the two countries to train and operate with the same equipment and further improve operability and efficiency. Japan set up a joint taskforce of government and industry in an effort to win the bid. Australian officials said work on a binding commercial contract with Mitsubishi Heavy Industries and the government of Japan would now begin, with a finalized agreement expected in 2026. They did not say how much each ship would cost or confirm a total figure for the package, citing ongoing negotiations. But Conroy said the government had allowed AU$10 billion for the project over the next 10 years. It forms part of the AU$55 billion that Australia has budgeted for the navy's entire surface combatant fleet during the same period. —- Associated Press writer Mari Yamaguchi contributed from Tokyo.
Winnipeg Free Press
6 days ago
- Business
- Winnipeg Free Press
Australia selects Japan's Mitsubishi Heavy Industries for $6.5B warship deal
WELLINGTON, New Zealand (AP) — Australia said Tuesday it accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian warships, expected to be worth 10 billion Australian dollars ($6.5 billion). Mitsubishi Heavy Industries' Mogami-class frigate won the deal over rival Germany's MEKO A-200 from Thyssenkrupp Marine Systems. Japan's government lobbied heavily for the deal after missing out on Australia's submarines contract to a French company in 2016. 'This is clearly the biggest defense industry agreement that will ever have been struck between Japan and Australia,' Defense Minister Richard Marles told reporters when he announced the deal Tuesday. 'In fact, it's really one of the biggest defense exports that Japan has ever engaged in.' The fleet of 11 naval vessels will replace Australia's ageing fleet of ANZAC-class ships. Three of the frigates will be built in Japan, with the first scheduled to be operational Australia in 2030, and the remaining eight due for construction in Australia. Australian news outlets reported that the German company's bid had emphasized their vessel's cheaper price and their greater experience building ships abroad. But Pat Conroy, Australia's Minister for Defense Industry, said the Mogami-class frigate was a 'clear winner' when assessed by 'cost, capability and meeting our schedule of delivery.' The vessels have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles. The frigates can operate with a crew of 90, compared to the 170 needed to operate the ANZAC-class ships. Mitsubishi's win was a boon for Japan's defense industry, which has not built naval vessels abroad before. Japan, whose only treaty ally is the United States, considers Australia a semi-ally and has increasingly sought to deepen bilateral military cooperation amid ongoing regional tensions in the disputed South China Sea. 'We welcome the decision by the Australian government as a major step to further elevate Japan's national security cooperation with Australia, which is our special strategic partner,' Japan's Defense Minister Gen Nakatani said Tuesday. Nakatani said co-developing the frigate will allow the two countries to train and operate with the same equipment and further improve operability and efficiency. Japan set up a joint taskforce of government and industry in an effort to win the bid. Australian officials said work on a binding commercial contract with Mitsubishi Heavy Industries and the government of Japan would now begin, with a finalized agreement expected in 2026. They did not say how much each ship would cost or confirm a total figure for the package, citing ongoing negotiations. But Conroy said the government had allowed AU$10 billion for the project over the next 10 years. It forms part of the AU$55 billion that Australia has budgeted for the navy's entire surface combatant fleet during the same period. —- Associated Press writer Mari Yamaguchi contributed from Tokyo.
6 days ago
- Business
Australia selects Japan's Mitsubishi Heavy Industries for $6.5B warship deal
WELLINGTON, New Zealand -- WELLINGTON, New Zealand (AP) — Australia said Tuesday it accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian warships, expected to be worth 10 billion Australian dollars ($6.5 billion). Mitsubishi Heavy Industries' Mogami-class frigate won the deal over rival Germany's MEKO A-200 from Thyssenkrupp Marine Systems. Japan's government lobbied heavily for the deal after missing out on Australia's submarines contract to a French company in 2016. 'This is clearly the biggest defense industry agreement that will ever have been struck between Japan and Australia,' Defense Minister Richard Marles told reporters when he announced the deal Tuesday. 'In fact, it's really one of the biggest defense exports that Japan has ever engaged in.' The fleet of 11 naval vessels will replace Australia's ageing fleet of ANZAC-class ships. Three of the frigates will be built in Japan, with the first scheduled to be operational Australia in 2030, and the remaining eight due for construction in Australia. Australian news outlets reported that the German company's bid had emphasized their vessel's cheaper price and their greater experience building ships abroad. But Pat Conroy, Australia's Minister for Defense Industry, said the Mogami-class frigate was a 'clear winner' when assessed by 'cost, capability and meeting our schedule of delivery.' The vessels have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles. The frigates can operate with a crew of 90, compared to the 170 needed to operate the ANZAC-class ships. Mitsubishi's win was a boon for Japan's defense industry, which has not built naval vessels abroad before. Japan, whose only treaty ally is the United States, considers Australia a semi-ally and has increasingly sought to deepen bilateral military cooperation amid ongoing regional tensions in the disputed South China Sea. 'We welcome the decision by the Australian government as a major step to further elevate Japan's national security cooperation with Australia, which is our special strategic partner,' Japan's Defense Minister Gen Nakatani said Tuesday. Nakatani said co-developing the frigate will allow the two countries to train and operate with the same equipment and further improve operability and efficiency. Japan set up a joint taskforce of government and industry in an effort to win the bid. Australian officials said work on a binding commercial contract with Mitsubishi Heavy Industries and the government of Japan would now begin, with a finalized agreement expected in 2026. They did not say how much each ship would cost or confirm a total figure for the package, citing ongoing negotiations. But Conroy said the government had allowed AU$10 billion for the project over the next 10 years. It forms part of the AU$55 billion that Australia has budgeted for the navy's entire surface combatant fleet during the same period. —-
San Francisco Chronicle
6 days ago
- Business
- San Francisco Chronicle
Australia selects Japan's Mitsubishi Heavy Industries for $6.5B warship deal
WELLINGTON, New Zealand (AP) — Australia said Tuesday it accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian warships, expected to be worth 10 billion Australian dollars ($6.5 billion). Mitsubishi Heavy Industries' Mogami-class frigate won the deal over rival Germany's MEKO A-200 from Thyssenkrupp Marine Systems. Japan's government lobbied heavily for the deal after missing out on Australia's submarines contract to a French company in 2016. 'This is clearly the biggest defense industry agreement that will ever have been struck between Japan and Australia,' Defense Minister Richard Marles told reporters when he announced the deal Tuesday. 'In fact, it's really one of the biggest defense exports that Japan has ever engaged in.' The fleet of 11 naval vessels will replace Australia's ageing fleet of ANZAC-class ships. Three of the frigates will be built in Japan, with the first scheduled to be operational Australia in 2030, and the remaining eight due for construction in Australia. Australian news outlets reported that the German company's bid had emphasized their vessel's cheaper price and their greater experience building ships abroad. But Pat Conroy, Australia's Minister for Defense Industry, said the Mogami-class frigate was a 'clear winner' when assessed by 'cost, capability and meeting our schedule of delivery.' The vessels have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles. The frigates can operate with a crew of 90, compared to the 170 needed to operate the ANZAC-class ships. Mitsubishi's win was a boon for Japan's defense industry, which has not built naval vessels abroad before. Japan, whose only treaty ally is the United States, considers Australia a semi-ally and has increasingly sought to deepen bilateral military cooperation amid ongoing regional tensions in the disputed South China Sea. 'We welcome the decision by the Australian government as a major step to further elevate Japan's national security cooperation with Australia, which is our special strategic partner,' Japan's Defense Minister Gen Nakatani said Tuesday. Nakatani said co-developing the frigate will allow the two countries to train and operate with the same equipment and further improve operability and efficiency. Japan set up a joint taskforce of government and industry in an effort to win the bid. Australian officials said work on a binding commercial contract with Mitsubishi Heavy Industries and the government of Japan would now begin, with a finalized agreement expected in 2026. They did not say how much each ship would cost or confirm a total figure for the package, citing ongoing negotiations. But Conroy said the government had allowed AU$10 billion for the project over the next 10 years. It forms part of the AU$55 billion that Australia has budgeted for the navy's entire surface combatant fleet during the same period. —-
