HD Hyundai Heavy Industries NAVAL & SPECIAL SHIP

HD Hyundai Heavy Industries Secures Korea’s Largest-Ever Naval Export Contract to Latin America

HD Hyundai Heavy Industries (HD HHI) has signed Korea’s largest-ever naval export contract in Latin America, marking a major milestone for the country’s defense industry.

On November 16 (local time), HD HHI finalized a ₩640.6 billion (approx. USD 480 million) joint production agreement with Peru’s state-owned SIMA Shipyard for the local construction of four naval vessels. The signing, held at the Naval Club (Centro Naval de San Borja) in Lima, came just three weeks after HD HHI was selected as the preferred bidder.

The ceremony was attended by Peruvian President Dina Boluarte, Prime Minister Gustavo Lino Adrianzen Olaya, Minister of Defense Walter Astudillo Chavez, Minister of Economy and Finance Jose Arista Arbildo, Navy Commander Luis Jose Polar Figari, and SIMA President Cesar Augusto Benavides Iraola. From the Korean side, participants included Choi Jong-wook, Ambassador of Korea to Peru, along with officials from DAPA, the Navy, and KOTRA. HD HHI was represented by Vice President Joo Won-ho, Head of the Special & Naval Ship Business Unit.

The project covers the construction of one 3,400-ton frigate, one 2,200-ton offshore patrol vessel, and two 1,400-ton landing ships, all to be built at SIMA’s facilities in Peru. HD HHI will provide design, equipment supply, and technical support, while SIMA will carry out final assembly. Deliveries to the Peruvian Navy are scheduled progressively through 2030.

Through this contract, HD HHI has secured strategic partner status with the Peruvian government and navy for the next 15 years. This status positions the company as the front-runner for follow-on orders that include five additional frigates, three OPVs, and two more landing ships, further expanding opportunities for future contracts.

The deal represents a “Team Korea” achievement, made possible through coordinated support from the Ministry of National Defense, the Navy, DAPA, the Coast Guard, the Ministry of Trade, Industry and Energy, the Korean Embassy in Peru, and KOTRA. It is expected to serve as a model case for expanding Korea’s global defense exports.

At the signing, HD HHI’s Joo Won-ho stated:

“We are committed to investing our advanced technologies and extensive experience to support the modernization and combat readiness of the Peruvian Navy. Together with SIMA, we aim to strengthen its shipbuilding capabilities and establish Peru as HD Hyundai’s hub for Latin America.”

Peruvian President Dina Boluarte added:

“Today marks a historic milestone as we set out to build four naval vessels in partnership with HD Hyundai Heavy Industries. This project will contribute not only to strengthening our naval power but also to advancing Peru’s broader industrial capabilities. The government will provide its full support to ensure success.”

Since delivering an 8,400-ton logistics support ship to New Zealand in 1987, HD HHI has exported a total of 18 naval vessels abroad. Notably, in 2022 the company secured a contract for six 2,200-ton offshore patrol vessels for the Philippine Navy, further solidifying its position as a leading global naval shipbuilder.