A contract for the Navy’s $10 billion Mogami warship program will be “signed” this weekend by defence minister Richard Marles in Victoria alongside his Japanese counterpart — but figures close to the project claim it was already quietly inked by officials last month.
The Nightly can also reveal a separate program to build South Korean designed Army vehicles in Mr Marles’ electorate is facing fresh headaches from a new parliamentary inquiry, and the unexpected resignation of its CEO.
Japanese defence minister Shinjirō Koizumi has flown to Australia to witness the formal conclusion of commercial negotiations to construct new upgraded Mogami general-purpose frigates to replace the Royal Australian Navy’s ageing Anzac-class fleet.
The Japanese designed vessels will have a range of up to 10,000 nautical miles and be equipped with a 32-cell vertical launch system, surface-to-air missiles and anti-ship missiles.
In August, Japan’s Mitsubishi Heavy Industries won a tightly fought bid against Germany’s Thyssenkrupp Marine Systems to supply the RAN with 11 of the Mogami frigates in what was hailed as a “very significant moment” in the bilateral relationship.
Under SEA300, MHI is expected to deliver the first of three rapidly acquired Japanese-made frigates to Australia in 2029, before construction is shifted to Western Australia’s Henderson shipyard for the final eight vessels.
Sources close to the SEA3000 project claim the contract was quietly finalised and signed by senior officials in March but a special “signing ceremony” has now been arranged which has involved the Japanese Defence Minister flying to Australia.
Local company Austal has been slated to construct the final eight Mogami warships in WA, but Japan has been spooked by a recent decision to allow South Korean company Hanwha to take a 19.9 per cent stake in the Henderson-based shipbuilder.
Last year, The Nightly revealed Tokyo had twice written to the Australia’s Defence Department expressing concerns about Hanwha’s proposal to increase its ownership of Austal, given the Perth-based shipbuilder’s role in constructing Mogami warships.
Planning is also underway for Japan’s Prime Minister Sanae Takaichi to visit Australia, likely next month, in a trip that would coincide with the 50th anniversary of the Basic Treaty of Friendship and Cooperation between both countries.
Saturday’s long-awaited completion of the Mogami contract will take place just days after the local head of a South Korean company building the army’s new infantry fighting vehicles informed his colleagues he would soon leave his position.
The Nightly can reveal Hanwha Defence Australia CEO Ben Hudson will depart the company on May 26 to take on a new Europe-based position in defence industry, just as Parliament begins a new examination of the LAND 400 Phase 3 project.
“My time working with the talented and dedicated Hanwha team in Australia and across our global operations has been very rewarding,” Mr Hudson said in a statement provided to The Nightly.
“I am sincerely grateful for the opportunity to lead such an exceptional group of professionals and for everything we have achieved together. It has been an honour and a privilege.”
Earlier this month the Parliament’s Joint Committee of Public Accounts and Audit “adopted an enquiry into Defence’s Procurement of Infantry Fighting Vehicles (Land 400 Phase 3)”.
The parliamentary probe will focus on the “effectiveness of Defence’s tender process and contracting arrangements to support the achievement for value for money outcomes”.
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