The new order brings France's total order to such vessels to 11. They are due for delivery between 2012 and 2022, the naval company said.

The contract confirmation was announced by France's Defense Minister Herve Morin during the "production launch of France's second multi-mission frigate in the series, the Normandie," DCNS said in a statement.

The agreement is an amendment to the European FREMM multi-mission frigate program, allowing for the development and construction of "three additional vessels, two in air defense configuration, as well as capability enhancements for all frigates in the series and a delivery schedule of one vessel every 10 months," Defense Professionals reported.

The contract also provides for an upgrading of sensors for air, surface and undersea detection for all ships.

DCNS will also provide operational support for the first few years of service.

"DCNS is proud to be part of Europe's most ambitious naval cooperation program and contribute to this new chapter in the construction of a Europe-wide naval defense community," Patrick Boissier, chairman and CEO of DCNS, was quoted saying by Defense Professionals. "A project on this scale is a remarkable human adventure as well as an industrial challenge and shows what our teams are able to design and build to meet the emerging requirements of our customers."

When the FREMM program began, a total of 17 ships were set for development at a unit price of $574 million. Facing however an economic slowdown the government in France slashed the order to 11, dropping also the planned surface attack version.

Even at the reduced number of ships, DCNS describes the FREMM as Europe's largest naval shipbuilding program with the most competitive ship in the market.

"Built under DCNS prime contractorship, they are heavily armed and carry state-of-the-art weapon systems and equipment, including the Herakles multifunction radar, MU90 torpedoes and Aster and Exocet MM40 missiles," said Defense Professionals.

A similar program in Italy includes 10 frigates.

Experts say DCNS is vying to tap into foreign markets to make up for its shortfall in domestic orders and to keep its unit costs down.

It has so far so one export model to Morocco and is in negotiations with Greece to sell it an additional three. It is also eyeing Saudi Arabia.

"The FREMM project provides 3 million hours of employment each year and almost 50 million hours over the duration of the program, which runs from 2006 to 2022," a company statement said. "Each frigate is equivalent to the construction of two Millau viaducts."

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