HD Hyundai Heavy Industries announced on April 16 that it has formally signed a joint construction contract with Peru’s state-owned SIMA Shipyard for the joint construction of four ships locally, valued at about 640.6 billion won (about $462.3 million) to be delivered to the Peruvian Navy in phases through 2030, following its announcement as the preferred bidder at the end of March.
The order, which includes one 3,400-ton frigate, one 2,200-ton patrol ship and two 1,400-ton amphibious ships, is the largest naval vessel contract between a Latin American country and a Korean shipbuilder. Under the contract, HD Hyundai Heavy Industries is responsible for ship design, equipment supply and technical support; SIMA Shipyard is responsible for the final construction work.
HD Hyundai Heavy Industries said that with the above contract, the company will become a strategic partner of the Peruvian government and navy for the next 15 years and is expected to be the preferred bidder for the Peruvian navy’s upcoming order of five frigates, three patrol boats and two amphibious assault ships.
The partnership is of great significance as it was facilitated by the Korean Ministry of Defense, the Defense Acquisition Program Administration (DAPA), as well as the public and private sectors, including the Korean Embassy in Peru and the Korea Trade-Investment Promotion Agency (KOTRA).
HD Hyundai Heavy Industries related personnel previously said, “This order is an important milestone in the company’s development of the South American ship market, and we will further expand our influence in the South American market with our rich export experience and advanced technology.”