Australia said Monday it has shortlisted Japan and Germany to build its new fleet of general purpose frigates in a program worth up to A$10 billion ($6.5 billion) over the next decade.

Japan has proposed vessels based on the Maritime Self-Defense Force’s cutting-edge Mogami-class frigate, Canberra said, with a final decision set to be made next year.

The frigate produced by Mitsubishi Heavy Industries Ltd. can be operated by around 90 crew, half as many as similar vessels.

File photo taken in Nagasaki in April 2022 shows a Japanese Maritime Self-Defense Force Mogami-class frigate. (Kyodo)

Germany’s contender is the MEKO A200 frigate developed by Thyssenkrupp Marine Systems, a modern version of the Australian navy’s Anzac-class frigates.

The announcement came after Australian Defense Minister Richard Marles told a press conference after a meeting with Japanese and U.S. counterparts earlier this month in Darwin that the Mogami-class frigate is a “very capable platform” and his country is “very impressed.”

Australia’s new frigates will replace the Anzac-class ships and will be equipped for undersea warfare and local air defense in order to secure maritime trade routes and its northern approaches, the government said.

South Korean and Spanish companies had also vied for the project.

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