KSOE to build 6 offshore patrol ships worth $579 mn for Philippine Navy

[Source: Korea Shipping & Offshore Engineering]

Korea Shipping & Offshore Engineering (KSOE) under Hyundai Heavy Industries Holdings (HHI), signed a deal worth 744.9 trillion won ($579.5 million) with the Philippines Department of National Defense to build 6 units of 2,400-ton offshore patrol vessel (OPV) for the country’s navy.

The Philippine OPV will be 94.4 meters in length and 14.3 meters in width with a maximum speed of 22 knots (41 kilometers per hour).

The vessel with 5,500 nautical miles will be equipped with a 76-millimeter main gun, two 30-millimeter secondary guns, and a helideck for helicopters and uncrewed aerial vehicles. They are to be constructed at HHI’s Ulsan shipyard under a plan to deliver them by 2028.

The latest deal is the result of the Korean shipbuilder’s extensive shipbuilding history with the Philippine navy. HHI, also under HHI Holdings, last year sealed a contract with the Philippines defense department for two patrol frigates. In 2016, it built and delivered two convoys to the country in 2016.

The Korean shipbuilder was able to meet the Philippines’ demand for customization in the contract for the six OPVs based on the previous deal history with the country.

“We will keep our top position in the naval ship market through our strategy for business diversification and intensive R&D investment,” said Nam Sang-hoon, head of HHI naval & special ship business unit.

KSOE shares were up 0.22 percent to 91,400 won while HHI shares lost 0.36 percent to 139,000 won in the early session on Tuesday.

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