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Britain's BAE win $25.7 bln Australian frigate contest

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Britain's BAE win $25.7 bln Australian frigate contest

Britain's BAE win $25.7 bln Australian frigate contest

BAE Systems has won a A$35 billion ($25.7 billion) contest to deliver anti-submarine warfare frigates for the Australian navy, the Australian government said on Thursday.

As Sonia Legg reports,the British firm beat competition from Italy and Spain.


Britain's BAE win $25.7 bln Australian frigate contest

A big win for Britain at a bad time.

After a week of warnings about the impact of Brexit on business BAE Systems has won a near $26 billion contest to deliver anti-submarine frigates for the Australian navy.

The Hunter class ships are based on the Type 26 frigate which BAE is building for the British Navy.

It currently uses F23 type frigates like HMS Westminster.

There will be nine new Australian ones in total and while they will be designed by BAE they'll be built by government-owned ASC Shipbuilding in Australia.

The Australian government said the order will underpin the country's maritime combat capability for decades to come.

BAE beat Italy Fincantieri and Spain's Navantia for the prized contract.

The new ships are due to enter service in the late 2020's, replacing eight Anzac class frigates.

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