AWD signs Oz destroyer contract

CANBERRA, Australia, Oct. 4 (UPI) -- Raytheon said Thursday it has signed a contract to start building new Air Warfare Destroyers for Australia.

"Representatives of the AWD Alliance -- the Commonwealth of Australia, Raytheon Australia and ASC Shipbuilding -- have signed Australia's Air Warfare Destroyers -- AWD -- Phase III contract signaling the start of building," the company said in a statement.

"As the AWD Mission Systems Integrator, Raytheon Australia will 'Australianize' the combat system around the Aegis core. The contract covers the design, development and procurement of the 'Australianized' combat system, and is valued at $1.2 billion to Raytheon," the company said.

Raytheon said the AWD Alliance was "committed to working together as an integrated team to deliver the Royal Australian Navy's next generation Hobart Class AWDs. The AWDs will provide air defense for accompanying ships, land forces and infrastructure in proximate coastal areas and for self-protection against attacking missiles and aircraft."

Ron Fisher, managing director of Raytheon Australia, said, "Today's milestone is about our commitment to deliver 'no doubt' Mission Assurance to the RAN through Raytheon's expertise as a Mission Systems Integrator. We've prepared well in the earlier phases, and today marks the moment when the alliance begins building Australia's most advanced ships."

Dan Smith, president of Raytheon Integrated Defense Systems and a member of the AWD Principals' Council, affirmed the importance of the program to Raytheon. "Our strong pedigree as a Mission Systems Integrator provides our Australian team with 'reachback' -- the ability to draw on the company's collective wealth of experience and expertise for the program's success.

"Raytheon is proud to be a partner with this team in what will be the most advanced shipbuilding project in Australia's history," he said.

"Raytheon Australia was selected for the AWD Alliance in April 2005 and will continue to partner with Australian industry over the life of the project," the company said.

Raytheon Australia is a wholly owned subsidiary of Raytheon Co.