BAE Systems wins £20bn contract to build Australian warships

BAE Systems said on Friday that it has been awarded an AUD35bn (£20bn) contract by the Australian government to build its fleet of nine new navy frigates.

The contract will see BAE design, build and support the ships, with production of the first ship expected to begin in early 2020s in South Australia.

BAE said it will begin negotiations soon with the Australian Department of Defence on the initial design part of the contract, which is expected to be in place by year-end.

The company also noted that it signed a contract last December with the government of Qatar for the supply of 24 Typhoon aircraft to the Qatar Emiri Air Force that was subject to financing conditions and receipt of the first payment.

BAE said financing discussions are in progress and when successfully concluded, the first payment is expected to be received in the third quarter. In addition, the group also announced an amendment to the contract to include the supply of nine Hawk Advanced jet trainer aircraft to the Qatar Emiri Air Force, along with an initial support package.