HD Hyundai Heavy, Wins Order for 4 Vessels in Peru... "A Historic Day"

Latin America Defense Export Hits a Record 640.6 Billion KRW
Government Agencies and Companies Team Korea Achievements
Preferred Negotiation Partner for Orders Over 15 Years

HD Hyundai Heavy Industries has succeeded in securing the largest-ever naval vessel order for South Korea's defense exports to Latin America.

On the 16th (local time), HD Hyundai Heavy Industries announced that it signed a local construction joint production contract with Peru's state-owned SIMA shipyard for four naval vessels worth a total of 640.6 billion KRW. This came about three weeks after being selected as the preferred negotiator at the end of last month.

On the 16th in Lima (local time), HD Hyundai signed a joint production contract for the local construction of four naval vessels with Peru's state-owned SIMA shipyard. From the front row, right: Joo Won-ho, Vice President and Head of Special Ship Business at HD Hyundai Heavy Industries; C?sar Venavides, Director of SIMA Shipyard. From the back row, right: Walter Astudillo Chavez, Minister of Defense of Peru; Dina Boluarte, President of Peru; Gustavo Adrianzen, Prime Minister of Peru; Jos? Arista Arbildo, Minister of Economy and Finance of Peru.
[Photo by HD Hyundai Heavy Industries]

The Peru naval project involves building one 3,400-ton frigate, one 2,200-ton offshore patrol vessel, and two 1,400-ton landing ships at the local shipyard.

HD Hyundai Heavy Industries plans to sequentially deliver these vessels to the Peruvian Navy by 2030 in cooperation with SIMA shipyard. HD Hyundai Heavy Industries will handle vessel design, equipment supply, and technical support, while SIMA shipyard will be responsible for final construction.

Through this contract, HD Hyundai Heavy Industries has secured a 'strategic partner' status with the Peruvian government and navy for the next 15 years. It has also secured preferred negotiator status for additional vessels that the Peruvian Navy plans to order in the future, including five frigates, three offshore patrol vessels, and two landing ships, raising expectations for further orders.

This order by HD Hyundai Heavy Industries is the result of a 'Team Korea' formed by government agencies and companies, including the Ministry of National Defense, the Republic of Korea Navy, the Defense Acquisition Program Administration, the Korea Coast Guard, the Ministry of Trade, Industry and Energy, the Korean Embassy in Peru, and KOTRA.

Perspective views of a 3,400-ton class frigate (center), a 2,200-ton class offshore patrol vessel (below), and a 1,400-ton class landing ship ordered by HD Hyundai Heavy Industries in Peru
[Photo by HD Hyundai Heavy Industries]

The contract signing ceremony held at the Naval Club (Centro Naval de San Borja) in Lima, Peru, was attended by HD Hyundai Heavy Industries Special Ship Business Representative Vice President Joo Won-ho, Peruvian President Dina Boluarte, Defense Minister Walter Astudillo Chavez, Navy Commander Luis Jose Polar Figari, SIMA shipyard Director Cesar Venavides, and other high-ranking Peruvian government officials. From Korea, Ambassador Choi Jong-wook to Peru and officials from the Defense Acquisition Program Administration were present.

At the signing ceremony, Vice President Joo Won-ho said, "We will invest our advanced technology and extensive experience to modernize and enhance the combat capabilities of the Peruvian Navy," adding, "We will ensure that SIMA shipyard becomes HD Hyundai Heavy Industries' regional hub in Latin America by creating opportunities for cooperation across the globe."

President Dina Boluarte said, "Today is a historic day marking a new milestone in the development of Peru's shipbuilding and maritime industry by producing four vessels together with HD Hyundai Heavy Industries," and added, "We expect development across the entire Peruvian industry, and the Peruvian government promises unlimited support to strengthen naval capabilities."

Since delivering an 8,400-ton naval auxiliary ship to New Zealand in 1987, HD Hyundai Heavy Industries has secured a total of 18 overseas naval vessels to date, including six 2,200-ton offshore patrol vessels developed for export to the Philippines in 2022.