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Australia issues a $ 26 billion warship agreement to the British BAE



Sydney (AFP) – Australia awarded a $ 26 billion contract on Friday to build a new generation of warships to British defense giants BAE Systems as the Pacific Nation embarks on an ambitious naval program against China ,

The lucrative business, worth € 22.4 billion, or AUD $ 35 billion, is a big gain for the London-listed BAE, which has been overshadowed by shrinking government defense budgets and declining demand for the Eurofighter Typhoon in recent years had to fight.

BAE & # 39; s Global Combat Ship, officially known as the Hunter class, beat competition from Italian company Fincantieri and Spanish Navantia SA and is delivered to the Royal Australian Navy under a 30-year contract.

The nine new frigates will be "the most advanced anti-submarine warships in the world" and underpin the country's security over the next several decades, said Australian Prime Minister Malcolm Turnbull.

– Lethality and Deterrence –

"The Hunter class We will provide the Australian Defense Force with the highest level of lethality and deterrence that our Chief Commanders need in times of global insecurity," he said.

"You will have the ability to perform a variety of missions independently or as part of missions a task group with sufficient range and stamina to effectively work across the region."

A key element of the mission was that In Australia, a high volume of construction had to be achieved in order to increase Canberra's domestic employment in the shipbuilding industry

The nine Type 26 submarine hunter ships are designed by BAE and built by Australian ASC shipbuilding in Adelaide with Australian steel and 4,000 jobs created.

The company will "build a subsidiary of BAE Systems" during the build to ensure BAE's system is fully responsible and responsible for the delivery of the frigates "before the ownership returns.

Britain said the £ 20 billion deal was "a result of four years of intense government involvement" and described it as a boost to its prospects after Brexit.

"The scale and nature of this agreement make the UK one of the leading companies in maritime design and shipping can be achieved by working hand in hand with British industry and government," said British Prime Minister Theresa May.

We have always understood that as we leave the EU, we can build on our close ties with allies like Australia, and this agreement is a perfect example of how the government is doing just that. "

– Increased risks –

The ships are Australia's current nine frigates replace the ANZAC class, with the new ships equipped with a long-range missile defense system against threats from rogue states like North Korea.

They are due to enter service in the late 2020s as the backbone of the Australian Navy's fleet, part of the nation's largest peace investment, which also includes 12 new submarines and 12 submarines offshore patrol vessels

The Great Rise The result is that Beijing is building its own muscle in the region through military rearmament in the disputed South China Sea, and countries are keeping an eye on Pyongyang nuclear-armed. [19659018] "We are in a riskier world," said Turnbull. "We have to be able to defend Australia, no matter what."

Charles Woodburn, chief executive of BAE Systems, said the agreement with the frigate "We reaffirm our position as one of the leading designers and builders of complex maritime platforms."

The transaction follows Canberra this week announcing a $ 5.2 billion investment in the development and purchase of US high-tech drones for joint military operations and water surveillance to the South China Sea

The French Marine Entrepreneur DCNS was selected to design and build Australia's new submarines for $ 50 billion in Adelaide, which rivals Japan and Germany.

in the face of weak demand for the Eurofighter Typhoon, which was developed with Italian Finmeccanica and Airbus in a European consortium.

In the late morning hours, BAE gained 2.69 percent to 649 pence, outperforming the overall slightly rising London stock market.


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