HD Hyundai Wins Project for Four Ships as Peru Modernizes Navy

Peru navy
HD Hyundai won its first contract to participate in a project for naval ships for Central and South America (HD Hyundai)

Published Apr 1, 2024 4:07 PM by The Maritime Executive


South Korean shipbuilder HD Hyundai Heavy Industries beat out a strong field of international competitors to win the first of a series of contracts being awarded to modernize Peru’s navy. HD Hyundai reports it is the largest-ever export defense products contract to Central and South America from a domestic Korean company and the contract also marks the company’s entry into the Central and South American market. It is the latest in the company’s strategy to expand its role in the market for international warships.

Peru called for bids for a contract with its state-run shipyard SIMA to build a total of four vessels, including a frigate, patrol ship, and landing vessel. According to reports, the long-term plans for the modernization of the navy project construction of a total of 23 ships to fully modernize the country’s fleet. Hyundai plans to compete for additional contracts along with using this as an entry to expand its presence in South America. The shipyard highlights that many aging ships in the South American region require replacement.

Hyundai entered a bid in February in Peru’s first solicitation. It beat out competing proposals from Germany, the United States, the United Kingdom, France, Spain, Italy and the Netherlands. The company is valuing the contract which calls for the design, supply of equipment, and providing technical expertise, at $462.9 million with the vessels due for completion by 2029. Hyundai will work with SIMA which will be responsible for the assembly of the ships.

They will build one 3,400-ton frigate. The contract specifies the vessel will have a length of 416 feet (127 meters) and a maximum speed of 26.5 knots, with a range of 6,000 nautical miles. Hyundai reports will be equipped with anti-ship missiles, a vertical launcher, and an AESA radar that can increase anti-aircraft detection capabilities. 

The contract also calls for a 2,200-ton deep-sea patrol boat. It will be 295 feet (90 meters) in length with a maximum speed of 20 knots and also a range of 6,000 nautical miles. It will be capable of handling a medium-size maritime helicopter and Hyundai says it will apply a mission module that can change the onboard equipment for various missions.

Finally, they will build two 1,500-ton landing ships each measuring 190 feet (58 meters) in length. They will have a maximum speed of 10 knots and a range of 1,500 nautical miles. They will be capable of transporting more than seven large armored vehicles or more than 20 TEU.

Among the other contracts that the Peruvian Navy is expected to open for bids in the future are five additional frigates, four deep-sea patrol ships, and two more landing ships. It is part of a broader plan to expand the country’s naval and port capabilities. They are also working with the Chinese on port projects.

HD Hyundai highlights that it has received more than 18 overseas naval contracts since 1987. Among them were the delivery of an 8,400-ton logistics support ship to New Zealand as well as six 2,200-ton deep-sea patrol ships exported to the Philippines in 2022. The South Korean government supported HD Hyundai in its latest bid and is seeking to aid the industry in expanding its competitive position in the international market. Hanwha acquired Daewoo Shipbuilding & Marine Engineering in 2023 as part of a strategy to enhance its competitive position with naval systems. Hanwha builds complex electronic systems including naval combat, SONAR, and weapons, and is seeking to expand in unmanned combat ships.