A Canadian company has won a large contract to upgrade the combat systems on two New Zealand navy frigates.
The contract is worth $446 million and will involve work on the radar, missile and sonar systems on the HMNZS Te Kaha and HMNZS Te Mana.
The work will be carried out by Lockheed Martin Canada, and is due to begin in 2016.
The Minister of Defence, Jonathan Coleman said no New Zealand companies were able to take on the upgrade.
He said about 90 percent of the work will be done in Canada but the rest could be completed in New Zealand.
Dr Coleman said the upgrade is urgently needed to bring the ships up to the same standard as those used by Australia, Canada, and Britain.
