HD Hyundai to develop submarines for Peruvian Navy

HD Hyundai will collaborate with Peru’s SIMA to develop submarines for the Peruvian Navy, enhancing their fleet and modernizing shipyard capabilities, following a recent MOU signed during the APEC summit.

Far left, Joo Won-ho, head of HD Hyundai Heavy Industries' (HHI) naval and special ship business unit; and SIMA General Manager César Augusto Benavides Iraola, far right, sign a memorandum of understanding for joint submarine development with Korean President Yoon Suk Yeol and Peruvian President Dina Boluarte in attendance at the Presidential Palace in Lima on Saturday. [HD HYUNDAI HEAVY INDUSTRIES]

Major Korean shipbuilder HD Hyundai will develop submarines for the Peruvian Navy in collaboration with Peru’s state-owned Servicios Industriales de la Marina (SIMA).

The two companies signed a memorandum of understanding (MOU) regarding the replacement of aging vessels and future submarine construction contracts in Lima on Saturday during the 2024 Asia-Pacific Economic Cooperation (APEC) summit with Korean President Yoon Suk Yeol; Peruvian President Dina Boluarte; Joo Won-ho, head of HD Hyundai Heavy Industries' (HHI) naval and special ship business unit; SIMA General Manager César Augusto Benavides Iraola; and 60 officials from the two governments in attendance.

Per the agreement, HD Hyundai Heavy Industries (HD HHI), a shipbuilding affiliate, and SIMA will jointly develop submarines tailored to the Peruvian Navy, as well as support the modernization of SIMA's shipyard and participate in subsequent projects in collaboration with the Peruvian government and the Navy.

HD HHI said it views the deal as a collaborative effort between various Korean government agencies including the Ministry of National Defense; the South Korean Navy; the Defense Acquisition Program Administration; the Korea Coast Guard; the Ministry of Trade, Industry and Energy; Korea's Embassy in Peru; and Korea Trade-Investment Promotion Agency.

In April, HD HHI signed a 640.6 billion won ($459.4-million) deal with SIMA for the construction of four vessels, the largest defense export to Latin America by a Korean company so far. The shipbuilder's partnership with the Peruvian government and Navy extends for the next 15 years.

HD HHI established a subsidiary in Peru in September, which began operations the following month.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]