BAE wins £19.6bn Type 26 frigate deal with Australian navy

Nine ‘Future Frigates’ based on BAE Systems Type 26 warship will be built for the Royal Australian Navy as part of a major new deal for the UK defence giant.

BAE won the tender for Australia’s Sea 5000 programme ahead of Italy's Fincantieri SpA and Spain's Navantia. The AUD $35bn (£19.6bn) contract will see South Australia’s ASC Shipbuilding become a subsidiary of BAE, with production of the frigates taking place in Australia, rather than the Type 26’s Glasgow base.

According to the UK government, it is the first time since the 1970s that a British frigate design has been exported. It is expected that the programme will create around 5,000 jobs in Australia over a period of 30 years.  

“BAE Systems’ selection as preferred tenderer for SEA 5000 reinforces our position as a leading designer and builder of complex maritime platforms,” said BAE Systems chief executive, Charles Woodburn.