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Australia Bolsters Naval power with $60 Billion Mitsubishi Frigate Deal, Signaling Shift in Pacific Security

(Sydney, australia) – July 5, 2024 – In a landmark decision poised to reshape the naval landscape of the Asia-Pacific, Australia has awarded Mitsubishi Heavy Industries (7011.T) a multi-billion dollar contract to build 11 next-generation frigates for the Royal Australian Navy. The deal, estimated at over $60 billion AUD, marks a significant strengthening of defense ties with Japan and a clear response to China‘s growing maritime assertiveness.

Deputy Prime Minister and defense Minister Richard Marles announced the selection of Mitsubishi, ending a decade-long search for a suitable partner to deliver this critical capability. The frigates will be based on a proven design, representing a crucial step forward after the controversial cancellation of a previous submarine contract with France in 2021.

“This is a historic day for Australia’s defense industry and our national security,” stated Marles. “These frigates will provide our Navy with a cutting-edge capability, essential for protecting our maritime interests and contributing to regional stability.”

A Return to Reliability: Japan’s Mogami-Class Influence

The decision follows a detailed evaluation process that considered proposals from several international shipbuilders. Japan’s proposal, centered around a collaborative progress based on the advanced Mogami-class frigate of the Japan Maritime Self-Defense Force (JMSDF), ultimately proved the moast compelling.

The Mogami-class is renowned for its advanced sensor suite, stealth capabilities, and adaptability for a wide range of missions, including anti-submarine warfare, anti-air defense, and maritime security. Australian officials highlighted the potential for enhanced interoperability with the JMSDF, a key ally in the region.

“The Mogami-class offers a technologically superior platform with a proven track record,” explained a senior defense official, speaking on background. “This partnership with Japan will not only deliver world-class frigates but also foster deeper collaboration and knowledge sharing between our two navies.”

Countering China’s Expansion in the Indo-Pacific

The timing of this proclamation is notably significant,as China continues to expand its naval presence and assert its territorial claims in the South China Sea and beyond. Australia, a staunch ally of the United States, has been increasingly vocal in its concerns about China’s military buildup and its potential to destabilize the region.

This frigate programme is a key component of Australia’s broader strategy to enhance its maritime defense capabilities and deter potential aggression. The new frigates will work alongside Australia’s existing fleet, including its Hunter-class frigates (also under construction) and its future nuclear-powered submarines, acquired through the AUKUS security pact.

Economic Benefits and Future Collaboration

Beyond the strategic implications, the Mitsubishi deal is expected to generate significant economic benefits for Australia. The program will create thousands of jobs in the defense industry and stimulate investment in advanced manufacturing and technology.

The Australian government has emphasized its commitment to maximizing Australian industry involvement in the frigate build,with a focus on local content and skills development. this will ensure that Australia not only acquires a powerful naval capability but also strengthens its own defense industrial base.

What’s Next?

Construction of the frigates is expected to begin in the early 2030s, with the first vessel anticipated to enter service by the late 2030s. Detailed design and engineering work will now commence, with close collaboration between Australian and Japanese engineers. This deal signals a new era of defense cooperation between Australia and Japan, and a firm commitment to maintaining peace and stability in the Indo-Pacific region.

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