By: Jamie Freed
SYDNEY — The Australian government on Monday selected U.S.-based defense contractor Raytheon as the sole bidder for a ground-based air defense system contract worth up to AUD $2 billion (U.S. $1.5 billion).
The surface-to-air missile system will replace the country's 30-year-old short-range capability, which is due to be retired by early next decade, Defence Minister Marise Payne said in a statement.
"A modern and integrated ground-based air defense system is needed to protect our deployed forces from increasingly sophisticated air threats, both globally and within our region," Payne said.
Australia, a staunch U.S. ally, last year committed to increase defense spending by nearly AUD $30 billion over the next 10 years at a time when China's economic and military power is growing throughout the Asia-Pacific region.
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