Nippon Electric Company will supply sonar and communications equipment for Royal Australian Navy frigates. The contract is valued at ¥30.9 billion and represents the first major overseas defence project of its kind.
Nippon Electric Company has signed a contract to supply sonar and communications equipment for Royal Australian Navy frigates, escort vessels responsible for missions including anti-submarine warfare. The total contract value is ¥30.9 billion, making it effectively the first major overseas contract in the defence sector.
12 years after Japan lifted its ban on arms exports, cases involving the overseas delivery of completed products remain extremely limited. NEC is seeking to differentiate itself by placing a dual-use strategy at the centre of its medium-term management plan.
The company has a background in designing and manufacturing radar at the same location, where the prices differed by an order of magnitude. It appears to have established a system for using lower-priced and higher-priced models according to requirements.