Image copyright BAE Systems

British defence giant BAE Systems has won a multi-billion pound contract from the Australian government to build nine new warships, marking a significant victory for British military exports. The federal government announced on Friday the company's Type 26 Global Combat ship will be the design for the program, in what will be the largest peace-time warship project in Australian history. Read more: Defence giant BAE systems has just landed a $200m bid to build US tanks

The nine new Hunter class frigates will be built in Adelaide and come into service from the late 2020s, replacing the current Anzac class frigates. The British Prime Minister Theresa May has already hailed the contract between BAE Systems and the Australian government as “the biggest Naval defence contract for a decade.”

A press release published by the British PM’s office today marked the deal as the first export of a British design for new-build frigates since the 1970s. The British defence company BAE System has come out as the winner of the Royal Australian Navy’s SEA 5000 Future Frigate Program, beating off competition from Italy’s Fincantieri and Spain’s Navantia. By the conclusion of the frigate build, says the Australian Government, ASC Shipbuilding will be a strategic national asset capable of independently designing, developing and leading the construction of complex, large naval warships. BAE Systems Australia Chief Executive, Gabby Costigan, said: "Construction of the Global Combat Ship – Australia is expected to make a significant contribution to the nation's economy, creating thousands of jobs, supporting new industries and boosting the national supply chain for decades to come.
BAE Systems is awarded a £19.6bn contract to build nine next-generation Hunter-class frigates for the Royal Australian Navy with construction expected to begin in 2020.