HD Hyundai signs W641b warship deal with Peru

HD Hyundai Heavy Industries has bagged an order worth 640.6 billion won ($462 million) to build four warships for Peru’s state-owned shipyard SIMA, marking Korea’s largest-ever defense export deal to Latin America.

According to HD Hyundai on Wednesday, Peru's President Dina Boluarte and Defense Minister Walter Astudillo Chavez, as well as Joo Won-ho, head of HD Hyundai Heavy Industries' special ship business unit, attended a signing ceremony held at the Naval Center San Borja, in Lima, Peru, Tuesday.

“Today marks a historic day as we establish a new milestone to build four warships with HD Hyundai Heavy Industries for the advancement of Peru's shipbuilding and maritime businesses,” Boluarte said at the ceremony.

Under the contract, the Korean shipbuilder will work with SIMA to build a 3,400-ton frigate, a 2,200-ton offshore patrol vessel and two 1,400-ton landing craft utilities at the Peruvian shipyard and deliver them to the Peruvian Navy in phases, with completion by 2030. HD Hyundai Heavy Industries will take the lead in designing the vessels, providing equipment and technological support, while SIMA will be in charge of building the ship.

“We will invest our cutting-edge technology and ample experience to modernize the Peruvian Navy and strengthen its combat capabilities,” said Joo.

“We will ensure that the SIMA Shipyard, which has provided us an opportunity to cooperate with them on the opposite side of the world, will become HD Hyundai Heavy Industries’ foothold for the Latin American region.”

The Korean shipbuilder noted that the deal secured its position as a strategic partner with the Peruvian government and Navy for the next 15 years, boosting its chances to secure more warship deals in the future. HD Hyundai Heavy Industries has secured the status of a preferred negotiator for the Peruvian Navy’s expected project orders for five frigates, three offshore patrol vessels and two landing craft utilities.

HD Hyundai said the Peruvian deal was made possible thanks to the joint efforts by various government bodies and the private sector, including the Korean Ministry of Defense, Navy, Defense Acquisition Program Administration, Ministry of Trade, Industry and Energy, Korean Embassy in Peru and Korea Trade-Investment Promotion Agency.

With the latest contract, the number of overseas warship orders secured by HD Hyundai Heavy Industries stands at 18 vessels.