Hanwha Ocean selected for $331 million project to build Korean Navy ship

Industry

Published: 26 Jul. 2024, 17:59 Updated: 26 Jul. 2024, 20:17

Hanwha Ocean selected for $331 million project to build Korean Navy ship

The blueprint for the logistics support ship, AOE-II, that Hanwha Ocean will deliver to the Korean Navy. The shipbuilder was selected as the sole bidder. [HANWHA OCEAN]

Hanwha Ocean, a shipbuilding arm of Hanwha Group, was selected as the preferred bidder for a construction project worth 460.1 billion won ($331 million) to build the Korean Navy’s logistics support ship, AOE-II.

The Korean shipbuilder said on Friday that the contract is expected to be signed in August after going through technological and conditional negotiations with the Defense Acquisition Program Administration.

The company was the sole bidder for the project, and the vessel will be delivered to the Korean Navy in December 2028.

The logistics support ship is designed to supply ammunition, cargo and fuel to naval vessels during operation. It can also maneuver at high speeds like destroyers and frigates during operations.

The new ship will be able to carry over 10,000 tons of supplies, which is expected to be more than 2.3 times the loading capacity of the prior lead ship AOE-I that Hanwha Ocean delivered to the navy in 2018.

"Despite the high technical complexity and challenging construction requirements, which have led other shipyards to shy away from building logistics support ships, Hanwha Ocean has decided to participate in the bid with a sense of responsibility as Korea's top maritime defense company,” Hanwha Ocean spokesperson said in a statement. “We are committed to national defense and public safety, and we approach this project with a spirit of serving the nation through business."

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]