HD HHI Press Release translated by Naval News
HD Hyundai is expanding its defense cooperation with Peru in Latin America through “Team Korea,” progressing from joint ship production to joint submarine development.
HD Hyundai announced on the 16th (local time) that it signed a Memorandum of Understanding (MoU) with Peru’s state-owned SIMA Shipyard in Lima, Peru, during the “APEC 2024” summit. The MoU focuses on “Joint Submarine Development for the Advancement of the Peruvian Industry.”
This MoU is part of the Peruvian Navy’s efforts to replace aging ships and aims to strengthen collaboration between the two parties to secure a contract for submarine construction.
The event was attended by South Korean President Yoon Suk Yeol and Peruvian President Dina Boluarte, along with HD Hyundai Heavy Industries’ Vice President Joo Won-ho, head of the Special Ship Business Unit, SIMA Shipyard’s CEO César Benavides, and approximately sixty other officials from both governments.
Through this MoU, HD Hyundai Heavy Industries and SIMA Shipyard will develop a submarine tailored to the needs of the Peruvian Navy, focusing on practical localization and industrial collaboration. HD Hyundai Heavy Industries plans to support the modernization of SIMA Shipyard and the advancement of Peru’s shipbuilding industry while actively participating in follow-up projects by strengthening ties with the Peruvian government and navy.
In April, HD Hyundai Heavy Industries signed a joint production contract with SIMA Shipyard for the local construction of four ships, valued at 640.6 billion KRW, the largest defense export deal in Latin America’s history.
Over the next 15 years, HD Hyundai Heavy Industries has also secured the status of a preferred bidder for follow-up shipbuilding projects as a “strategic partner” of the Peruvian government and navy.
The success of Peru’s ship project has drawn attention as a collaborative achievement of “Team Korea,” comprising government agencies and corporations, including the Ministry of National Defense, the Republic of Korea Navy, the Defense Acquisition Program Administration, the Korea Coast Guard, the Ministry of Trade, Industry and Energy, the Korean Embassy in Peru, and KOTRA.
“We will do our utmost to expand Peru’s ship projects, which will serve as a production base in Latin America, and continue defense cooperation between the two nations. This will help enhance the global stature of K-Defense and contribute to national interests.”
Vice President Won-ho Joo, HD Hyundai Heavy Industries
Earlier, the two presidents attended a ceremony to sign nameplates that will be installed on the ships currently under joint construction by HD Hyundai Heavy Industries and SIMA Shipyard, symbolizing the strengthening of friendly cooperation between the two countries.
Meanwhile, HD Hyundai Heavy Industries established a branch office in Peru in September and began full-scale ship construction in October, starting with the departure of the first equipment shipment.
