Four Escort Ships Worth 620 Billion KRW
Largest Defense Export to Latin America
Ministry of National Defense and 'Team Korea' Achievements
HD Hyundai Heavy Industries has officially entered the Latin American naval vessel market by securing an order for four ships from Peru. This marks the largest scale of defense exports by a domestic company to Latin America. Notably, having maintained a strategic partnership for 15 years, the company has gained a favorable position for future contracts, writing a new chapter in defense exports.
On the 29th, HD Hyundai Heavy Industries announced that it was selected as the preferred negotiation partner for a contract to locally co-build four naval vessels worth a total of $462.9 million (approximately 620 billion KRW) at Peru's state-owned SIMA shipyard, including one 3,400-ton frigate, one 2,200-ton offshore patrol vessel, and two 1,500-ton landing ships.
HD Hyundai Heavy Industries plans to deliver these vessels sequentially to the Peruvian Navy by 2029 in cooperation with SIMA shipyard. HD Hyundai Heavy Industries will handle the design, supply of equipment, and technical support, while SIMA shipyard will be responsible for the final construction.
'Team Korea' Outperformed European Competitors
A bird's-eye view of the 3400-ton class frigate (center), 2200-ton class offshore patrol vessel (bottom), and 1500-ton class landing ship (top) ordered by HD Hyundai Heavy Industries from Peru [Photo by HD Hyundai Heavy Industries]
To secure this order, HD Hyundai Heavy Industries and the government, including the Ministry of National Defense, formed 'Team Korea' in September last year.
After the bidding announcement by Peru's state-owned SIMA shipyard, the government sent a letter of support to the Peruvian side under the name of the Defense Acquisition Program Administration chief.
The Korean ambassador to Peru also supported the dispatch of the letter locally and actively promoted Korean shipbuilding technology to the Peruvian side.
The Ministry of Trade, Industry and Energy conveyed the government’s stance on industrial cooperation and technical support to Peru.
The company stated, "This order is even more meaningful as it was achieved by 'Team Korea,' composed of government agencies and companies including the Ministry of National Defense, Defense Acquisition Program Administration, Ministry of Trade, Industry and Energy, Korean Embassy in Peru, and KOTRA, surpassing strong competitors from Italy, Spain, and the Netherlands."
"A Significant Milestone in Pioneering the Latin American Naval Market... Additional Exports Expected"
The Peruvian Navy plans to place additional orders for five frigates, four offshore patrol vessels, and two landing ships. Once the main contract is signed next month, HD Hyundai Heavy Industries will continue cooperation as a strategic partner for the Peruvian Navy’s force enhancement over the next 15 years. Accordingly, the likelihood of securing follow-up projects is expected to increase significantly.
Since many vessels in the Latin American region are aging, demand for replacement with the latest ships is rising, and this order is expected to serve as a stepping stone to expand exports to other countries in the region.
Won Won-ho, Vice President and Head of HD Hyundai Heavy Industries’ Special Ship Business, emphasized, "This order will be an important milestone in pioneering the Latin American naval market. We will expand the entry of K-ships into the Latin American market with our abundant export experience and advanced technology."
AESA Radar Equipped and Mission Module Applied... Landing Ships Can Transport More Than Seven Large Armored Vehicles
The ordered frigate is 127 meters long, 14.9 meters wide, with a maximum speed of 26.5 knots and a cruising range of 6,000 nautical miles. It will be equipped with anti-ship missiles, vertical launch systems, and an AESA radar to enhance air defense detection capabilities.
The offshore patrol vessel is 95 meters long, 14.3 meters wide, with a maximum speed of 20 knots and a cruising range of 6,000 nautical miles. It can operate medium-sized maritime operation helicopters and will apply a mission module that allows easy changes to onboard equipment to perform various missions.
The landing ship is 58 meters long, 13.2 meters wide, with a maximum speed of 10 knots and a cruising range of 1,500 nautical miles. It can transport more than seven large armored vehicles or over 20 20-foot containers.
HD Hyundai Heavy Industries began exporting naval vessels in 1987 by delivering an 8,400-ton military support ship to New Zealand. In 2022, it secured an order for six 2,200-ton offshore patrol vessels developed for export from the Philippines, bringing the total number of overseas naval vessels ordered to 18 to date.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
