In a high-stakes multinational bidding war, Japan and Germany are competing for a $10 billion Australian warship contract. Japan’s Defence Chief is looking to fast-track the delivery of upgraded Mogami class warships. He is willing to do this in front of the requirements for his own navy, provided that design wins out for the contract. Australia is looking to significantly strengthen its own naval capabilities. As part of this broader strategy, the country intends to shift final assembly of eight new, larger warships to the Henderson shipyard outside Perth during the 2030s.
Dr Oliver Juckenhöfel, Head of Operating Unit Surface Vessels at TKMS, pictured above, was in New Zealand recently defending the bid. New Zealand has decided to replace its ANZAC class fleet. The country has openly stated its timeline is not as urgent as that of Australia. The Australian government is expected to make a decision soon, having shortlisted designs from Japan’s Mitsubishi Heavy Industries (MHI) and Germany’s TKMS, while considering offers from South Korea and Spain.
Bidding Strategies and Production Plans
Japan stands prepared to accelerate the build-up of Mogami warships. This move is intended to support its broader strategy to win the Australian contract. This move comes as no surprise, acting as a clear signal of Japan’s intent to continue deepening bilateral defense relations with Australia amid growing concerns over regional security.
At the same time, TKMS wants to build the first three frigates in either Germany or Japan, before eventually shifting production to Australia. This decision aligns with Australia’s increasingly aggressive Indo-Pacific defence posture and Defense Strategic Review in 2023. Significantly, it aims to strengthen domestic shipbuilding and foster an independent, self-reliant defense industry.
Dr. Juckenhöfel underscored TKMS’s strong track record in the field of naval shipbuilding. He cited the ANZAC Frigate Program as a marquee example of this successful collaboration.
“There is no better example of our track record than the ANZAC Frigate Program, being part of the MEKO 200 family of frigates,” – Dr Oliver Juckenhöfel
Tenix Defence, now part of BAE Systems, had originally built the ANZAC ships in Australia. This inquiry took place under a technology transfer agreement that increased regional capacity in technology design and integration.
Competitive Landscape
The SEA3000 project is thus an enormous opportunity for the TKMS and equally for MHI. As tensions rise in the Asia-Pacific, this competition highlights the crucial role of advanced naval capabilities. Each of the four contenders has something different to offer. TKMS can point to a track record of 37 years service with its MEKO family of warships which have been exported to 16 different navies around the globe.
A second “Australianised” variant of the MEKO 200 is currently under evaluation. This variant is equipped with SAAB’s 9LV combat management system. Defence is very much in favour of it because of how easily it fits into the existing Australian naval assets.
Dr. Juckenhöfel underlined the MEKO A-200’s potential to be longterm choice for Australia’s naval future.
“We are confident that the MEKO A-200 will serve not only as a powerful, reliable ship but also as a long-term investment in the future of the Australian Navy and the continuous naval shipbuilding and sustainment enterprise,” – Dr Oliver Juckenhöfel
Instead, the Albanese government has decided to focus on MHI and TKMS – the other two bidders. This decision is a testament to their long-standing commitment to enhancing Australia’s naval capabilities and deepening ties with key allies.
Future Implications
The result of this contract will have long-term ramifications for both Australia and its international allies. This will directly inform how the Navy operates in the region in future. Beyond that, it will shape the competition within the defense industrial base and drive technology sharing.
Third, Australia is working hard to catch up with its own naval modernization. Strategic partnerships, including those that strengthen the country’s defense industrial base, will be a significant factor in building our future defense landscape. Soon, they will announce which company will win the $10 billion contract. This will begin Australia’s most exciting new chapter in naval history.
