Australia and Japan sign $6.5B warship contracts

Australia and Japan have signed contracts for the first three of a $6.5 billion fleet of Japanese-designed warships.

Mitsubishi Heavy Industries will build the first three Mogami-class frigates in Japan.

Australia plans to build another eight in Western Australia.

The first delivery is expected in three years.

The deal boosts Japan’s defense industry and replaces Australia’s aging ANZAC-class frigates.

Japanese Defense Minister Shinjiro Koizumi and Australian counterpart Richard Marles attended the signing ceremony on Saturday.

Marles said the Japanese frigates are a major step toward a larger and more lethal Australian surface combat fleet.