ANZAC, the acronym of the Australian and New Zealand Army Corps, is the name given to a new class often frigates under construction for the Royal Australian and Royal New Zealand Navies. The prime contract was awarded in November 1989, and a separate design sub-contract was awarded concurrently. HMAS ANZAC, the first of eight ships for the Royal Australian Navy (RAN), was delivered in March 1996. HMNZS Te Kaha, the first of two ships for the Royal New Zealand Navy (RNZN), was delivered in May 1997. The paper describes the collaborative process, involving the Australian Department of Defence, the New Zealand Ministry of Defence, and Defence Industry in Australia, New Zealand and overseas, for the design and production of the ships. The need to maximise the level of Australian and New Zealand industrial involvement, led to a process of international competition between prospective suppliers, and significant configuration changes from the contract design baseline. Delivery of the first ship was extended to accommodate the revised approach, and in the event only five months additional time proved necessary. Although formal acceptance of HMAS ANZAC is not due until the completion of operational test and evaluation, the contractor's sea trials have successfully demonstrated the performance exceeding the requirements and the expectations of the RAN. The paper also describes the growing maturity of Australia's naval shipbuilding industry. It suggests some lessons learned from the project, and identifies issues important for the further development and sustainability of the industry. It advocates the need for agreed methodologies to evaluate the productivity of the various elements of the shipbuilding process, and to help ensure the establishment and maintenance of world competitive costs and quality.