STX, Hyundai Rotem sign landmark $60M deal to deliver armored vehicles to Peru
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Korea's STX and Hyundai Rotem signed a $60 million contract with the Peruvian Army to export wheeled armored vehicles.
The strategic partnership was reached between Peru's Arms and Ammunition Factory (FAME S.A.C.) and a consortium of the two Korean defense companies and finalized at the Headquarters of the Peruvian Army in Lima on Monday evening, the companies said on Wednesday.
Under the deal, STX-Hyundai Rotem procured a position as a key supplier of defense and special-purpose vehicles to the Peruvian Army.
They will supply 120 K-808 White Tiger 8x8 wheeled armored vehicles, with the initial batch of 30 units to be delivered by the end of 2025. This marks the first sale of Korean-made armored personnel carriers to Latin America.
The K-808 is equipped with tires that can continue operating even after being punctured and an automatic control system that adjusts tire pressure based on ground contact. It also features an amphibious propulsion system that allows it to traverse rivers.
A vehicle assembly plant will also be built at FAME headquarters, where a wide range of cutting-edge special units will be produced.
The strategic partnership also prioritizes STX and Hyundai Rotem in the future supply of military and special vehicles for the Peruvian Army, Navy, Air Force and police.
The contract signing ceremony, a follow-up to the preferred bidder selection on May 1, gathered Peruvian President Dina Boluarte and key government officials, along with Hyundai Rotem President and CEO Lee Yong-bae, STX CEO Park Sang-jun and Korean Ambassador to Peru Choi Jong-uk.
“In this way, we ratify our total commitment to security, defense and national sovereignty, with the promotion of our military industry,” Boluarte said in a message on X, formerly Twitter. The head of state also thanked the Korean industry for its trust and invited foreign companies to continue investing in Peru.
"We express our gratitude to Korea's Defense Ministry, Foreign Ministry, and Kotra for their support, as this strategic partnership contract is significant as it expands our defense market presence from the navy to the army," said the STX CEO.
"The recent contract signing between FAME, STX, and Hyundai Rotem will open a new future for security and defense industry cooperation between the two countries," commented Ambassador Choi.
In April, Korean shipbuilder HD Hyundai Heavy Industries signed a 640.6 billion-won contract to jointly construct four warships for the Peruvian Navy, including one 3,400-ton frigate, one 2,200-ton patrol vessel and two 1,400-ton amphibious warfare ships at Peru's SIMA’s shipyard by 2029.
The contract marked the largest naval ship order placed by a Latin American country with a Korean shipbuilder.
BY SEO JI-EUN [seo.jieun1@joongang.co.kr]
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