Hyundai Heavy Industries Wins Bid for Naval Unit Co-production in Peru: Investment of US$462.9 Million Estimated

2024-04-02 03:00:00

At the end of March, Servicios Industriales de la Marina (Sima Perú) reported that the Hyundai Heavy Industries shipyard (South Korea) won the bid for the co-production of naval units in Peru. Following the announcement, details are now presented for the execution of local naval construction projects for two auxiliary logistics transport units, an ocean patrol vessel and a multirole ship. Altogether, an investment of US$462.9 million is estimated and a delivery date to the Peruvian navy in 2029.

Specifically, Hyundai Heavy Industries, the world’s largest shipbuilding company, will be co-producer of a 3,400-ton frigate, a 2,200-ton high-altitude patrol vessel and two 1,500-ton landing ships. To complete the work, the company will be in charge of designing the units, supplying materials and equipment, as well as providing technical support, while the SIMA shipyard will be in charge of the final construction.

The frigate will be loaded with anti-ship missiles and vertical launchers, AESA radars to improve anti-aircraft detection capabilities, and the patrol vessel will be able to carry medium-sized maritime operations helicopters. The landing ship will have the possibility of carrying more than seven armored personnel carriers, Business Korea reported.

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Development opportunities

The agreement signed between Sima Perú and Hyundai Heavy Industries represents a strategic partnership for the next 15 years. In that sense, considering that the Peruvian Navy plans to build more than 20 ships to modernize its fleet, the order could represent a sum of billions of dollars in the coming years, which represents an opportunity for regional expansion.

Since 1987, the South Korean company has obtained a total of 18 orders for ships abroad.

Prior to selecting the South Korean company, Sima Peru requested expressions of interest from the defense industry and the main shipyards of various countries. To this end, he sent letters to the embassies of Germany, South Korea, Spain, the United States, France, Italy, the Netherlands and the United Kingdom.