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British defence company wins $35 billion Australian frigates contract

BAE's Type 26 Global Combat Ships will eventually replace the Anzac class frigates.

BAE's Type 26 Global Combat Ships will eventually replace the Anzac class frigates. Photo: BAE Systems

British defence company BAE Systems has won the $35 billion contract to build Australia’s fleet of new navy frigates.

The federal government has announced the company’s Type 26 Global Combat ship will be the design for the naval program.

The nine new ships will be built in Adelaide and will be officially known as the Hunter class.

The Turnbull government says the program will create 4000 jobs across the country and create unprecedented local and global opportunities for businesses large and small.

The advanced guided missile frigates will begin entering service in the late 2020s.

The Hunter class “will be one of the most capable warships in the world”.

“The Hunter class will have the capability to conduct a variety of missions independently, or as part of a task group, with sufficient range and endurance to operate effectively throughout the region,” the government said in a statement.

Finance Minister Mathias Cormann said the contract would deliver “one of the world’s most advanced anti-submarine frigates”.

“It will create about 4000 jobs, and it will secure a sovereign naval shipbuilding industry here in Australia for decades to come,” he told Sky News.

British Foreign Minister Boris Johnson said the project, which involves the UK multinational defence company BAE Systems, was a sign of a strong UK-Australia relationship.

“Fantastic news that #Australia has chosen @BAESystemsplc Type 26 frigate for its new warship contract, worth up to PS20bn. Even further proof the UK-Australia relationship is stronger than ever!” he tweeted.

BAE had been shortlisted for the frigate program by the Turnbull government along with rival companies Fincantieri and Navantia.

The federal government-owned ASC Shipbuilding will become a subsidiary of the UK defence giant during the build.

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