Late last week — Friday, in fact — DefenseNews.com reported that the Taiwanese Defense Ministry has just added $187 million to its budget for 2014/2015, to purchase a pair of used Perry-class frigates from the U.S. Navy. Taiwan already has eight Perrys in its fleet, built locally by Taiwanese shipbuilder China Shipbuilding.
Conceivably, the two Perrys Taiwan wants to buy could also be built locally. But last year, GlobalSecurity.org reported that the Taiwanese defense minister was negotiating a purchase of decommissioned USN frigates instead (estimating the cost at roughly $239 million). So that seems to be the more likely theory. The vessels are likely to receive retrofitting, presumably at General Dynamics Corporation (NYSE:GD)‘ Bath Iron Works, one of their original builders, as well as upgrades prior to delivery, in particular the addition of AN/SQR-19 Towed Array Sonar systems from Lockheed Martin Corporation (NYSE:LMT).
While the details aren’t yet all clear, and no notification of a sale has yet been submitted to Congress for approval, just knowing that the contracts are “out there” puts you a step ahead of the folks on Wall Street.
The article Defense News Roundup: Will the U.S. Army Go Solar? originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends AeroVironment and Dominion Resources (NYSE:D) and owns shares of AeroVironment, General Dynamics, Lockheed Martin, and Raytheon.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.