Japan has beat a German company to win a contract for 11 frigates in what will be its biggest-ever postwar foreign defense contract.

Australia will upgrade its navy with 11 frigates from Japan, Australian Defense Minister Richard Marles said on Tuesday.

“This is clearly the biggest defense-industry agreement that has ever been struck between Japan and Australia,” Marles said.

The 10 billion Australian dollar ($6.5 billion or €5.6 billion) deal saw Mitsubishi Heavy Industries awarded the tender to supply Mogami-class warships, beating out Germany’s ThyssenKrupp Marine Systems.