Daewoo Shipbuilding wins 215 bln-won contract for submarine parts

Published : Aug 25, 2017 - 10:34 Updated : Aug 25, 2017 - 10:55

Daewoo Shipbuilding & Marine Engineering Co., a major shipyard here, said Friday that it has won a 215 billion-won ($191 million) deal to supply key parts for a submarine built by its local rival Hyundai Heavy Industries Co.

Under the deal with Hyundai Heavy, Daewoo Shipbuilding will deliver the parts to its rival by 2021, it said.

Hyundai Heavy is constructing the third 3,000-ton submarine as part of the Chang Bogo-III project in a deal with the Defense Acquisition Program Administration, the country's arms procurer.

Under the 10 trillion-won deal, South Korea plans to build nine 3,000-ton submarines in three batches.

Two submarines are already under construction by Daewoo Shipbuilding. The same parts are used in the two submarines as well.

The first batch of three submarines will be commissioned between 2020 and 2024.

Since 1987, Daewoo Shipbuilding has secured deals to build 17 submarines, including the three placed by Indonesia.

Daewoo Shipbuilding has delivered 12 submarines so far, with five under construction. (Yonhap)