HD Hyundai, Cooperation with Peru on Ship Production and Submarine Joint Development

MOU Signing Attended by Presidents of Korea and Peru

HD Hyundai is expanding defense industry cooperation with Peru through joint submarine development.

On the 16th (local time), HD Hyundai announced on the 18th that it signed a Memorandum of Understanding (MOU) for the development of Peru's industry through joint submarine development with the state-owned SIMA Shipyard in Lima, Peru, where the Asia-Pacific Economic Cooperation (APEC) 2024 is being held.

Joo Won-ho, Head of HD Hyundai Heavy Industries Special Ship Business Division (left), is signing a memorandum of understanding for joint submarine development with Cesar Venavides, Director of Peru's SIMA Shipyard (right), at the Presidential Palace in Lima, Peru, on the 16th (local time), in the presence of President Yoon Suk-yeol and Peru President Dina Boluarte. (Provided by the Presidential Office)

This agreement is part of the Peruvian Navy's project to replace aging vessels and aims to strengthen cooperation between the two companies to secure orders for submarine construction projects. The signing ceremony was attended by more than 60 government officials from both countries, including President Yoon Suk-yeol, Peruvian President Dina Boluarte, Joo Won-ho, Head of HD Hyundai Heavy Industries' Special Ship Business, and C?sar Venavides, Director of SIMA Shipyard.

HD Hyundai Heavy Industries and SIMA Shipyard plan to develop submarines tailored to the Peruvian Navy and pursue substantial localization and industrial cooperation. HD Hyundai Heavy Industries will continue to strengthen cooperation with the Peruvian government and navy by supporting the modernization of SIMA Shipyard and the development of Peru's shipbuilding industry, and will actively participate in follow-up projects.

In April, HD Hyundai Heavy Industries signed a joint local production contract with SIMA Shipyard for four vessels worth a total of 640.6 billion KRW, the largest amount in the history of Latin American defense exports. Over the next 15 years, it has secured the status of preferred negotiator for follow-up vessel projects as a "strategic partner" with the Peruvian government and navy. Additionally, HD Hyundai Heavy Industries established a branch office in Peru in September and began full-scale vessel construction by shipping the first equipment in October.

Joo Won-ho, Head of HD Hyundai Heavy Industries' Special Ship Business, said, "We will do our best to expand the vessel business in Peru, which will be a production base in Latin America, continue defense cooperation between the two countries, enhance the status of K-defense, and contribute to national interests."

Meanwhile, the presidents of both countries also held a signing event for a nameplate to be installed on the vessels jointly built by HD Hyundai Heavy Industries and SIMA Shipyard, symbolizing the strengthening of friendly cooperation between the two nations.