Hyundai Heavy Industries Wins Largest Ever Warship Export Deal Worth $463 Million

The leading shipbuilder of South Korea, HD Hyundai Heavy Industries, has made history by landing a $463 million deal to construct four warships for the Peruvian Navy.

This is a landmark achievement for Hyundai Heavy and Korea, as it is the largest warship export sale to Latin America.

According to the contract, HD Hyundai Heavy, in partnership with Peru’s state-owned shipbuilder SIMA Peru, will build four warships at Peru’s Callao shipyard by the end of 2029.

The fleet contains two 1,500-ton logistics transport auxiliary ships, one 200-ton oceangoing patrol vessel, and a massive 3,400-ton multi-role battleship called a frigate.

Hyundai Heavy’s remarkable victory also grants them the sole authority to work with the Peruvian Navy for more than ten years, suggesting the possibility of other billion-dollar shipbuilding contracts.

Hyundai Heavy was chosen following a rigorous bidding procedure that assessed numerous offers from foreign shipbuilders, including competitors from France, Germany, Italy, the Netherlands, Spain, the UK and the US.

Several factors, including technological transfer, the participation of regional businesses, technical expertise, cost, and construction schedule, had a role in the decision to award the contract to Hyundai Heavy.

Hyundai Heavy and SIMA Peru will collaborate to handle ship design, equipment supply, and technical assistance, with Hyundai Heavy managing the shipbuilding operations to completion.

This historic arrangement highlights Hyundai Heavy’s shipbuilding capabilities and represents a deliberate move by Peru’s Navy to modernise its fleet.

This partnership is essential to Peru’s larger fleet modernisation initiative, which intends to build 23 ships.

Peru’s plans to construct a new dock to handle large cargo ships from the planned Chancay mega-port, which Cosco Shipping will build, further bolster this project.

The deal with Peru comes after Hyundai Heavy recently started an office in Manila, establishing the Philippines as a base for Southeast Asian warship sales.

This accomplishment broadens Hyundai Heavy’s portfolio, which already includes contracts for constructing warships from other countries, such as the Philippines.

Hyundai Heavy plans to officially sign the deal with the Peruvian Navy in April to begin a 15-year collaboration.

This strategic partnership not only strengthens Hyundai Heavy’s position but also puts it in a favourable position for upcoming government procurement projects in Peru, such as the expected orders for more frigates, deepwater guard vessels, and landing ships.

Reference: kedglobal, Korea Times

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Source: Maritime Shipping News