HD Hyundai Heavy wins $463 million contract with Peru for warships

Industry

Published: 29 Mar. 2024, 17:23 Updated: 29 Mar. 2024, 17:26

HD Hyundai Heavy wins $463 million contract with Peru for warships

A computer-generated image of a 1,500-ton landing ship, from the top, a 3,400-ton frigate and a 2,200-ton deepwater guard ship that HD Hyundai Heavy Industries won the building contract of from Peru [HD HYUNDAI]

HD Hyundai Heavy Industries has been selected as Peru's preferred bidder for a $462.9 million construction deal involving four warships in collaboration with the country's state-owned shipbuilder, SIMA Peru.

The warships to be built include a 3,400-ton frigate, a 2,200-ton deepwater guard vessel and two 1,500-ton landing ships, according to a release issued by the Korean shipbuilder on Friday.

The construction contract marks the largest export volume for a Korean shipbuilder to the Latin American defense industry, the company said.

"This order is especially meaningful as it is the result of the so-called Team Korea effort," explained HD HHI. "It is considered that the reason HD Hyundai Heavy Industries has been able to win the order over Italy, Spain, the Netherlands and other strong competitors is because of the teamwork from various Korean organizations including the Ministry of Defense, the Defense Acquisition Program Administration, the Ministry of Trade, Industry and Energy, the Korean Embassy in Peru and the Korea Trade-Investment Promotion Agency."

With a growing number of vessels aging in the Latin American region, there is an increasing need to modernize fleets, including Peru's. The Korean shipbuilder expressed hope that this recent agreement will pave the way for "further business opportunities in neighboring countries."

HD Hyundai Heavy Industries, in partnership with SIMA Peru, is scheduled to deliver the vessels to the Peruvian Navy by 2029. While the Korean firm will be in charge of the ship design, tools, materials and technical support, the SIMA shipyard will be responsible for the final building stages.

The definitive agreement is set to be signed in April, with the Korean company becoming a "strategic partner" with the Peruvian Navy for the next 15 years. This strategic partnership positions the company favorably for upcoming procurement projects of the Peruvian government, including its navy's plan for additional orders comprising five frigates, four deepwater guard vessels and two landing ships.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]