HD Hyundai Heavy Industries (HHI) has signed a contract for the local construction of four naval vessels with Servicios Industriales de la Marina (SIMA), Peru's state-run shipyard, at the Peruvian Navy Club (Centro Naval de San Borja).
The contract was signed on 16 April, three weeks after HHI was selected as the preferred bidder for the project on 27 March.
Worth US$463 million (AU$719 million), the contract includes one 3,400 ton frigate, one 2,200 ton Offshore Patrol Vessel (OPV) and two 1,400 ton Landing Craft Units (LCUs).
HHI will be responsible for the vessels’ design, equipment & material package, and technical support, while construction will be undertaken by SIMA. The companies will construct and deliver the four vessels to the Peruvian Navy by 2029.
The contract was signed by Rear Admiral César Benavides Iraola, Executive Director of SIMA, and Dr Won-ho Joo, Chief Executive of HHI’s Naval & Special Ship Business Unit.
“With cutting-edge naval technology and abundant experience, HHI will invest profoundly in modernizing and strengthening the Peruvian Navy’s combat capabilities,” said Dr Won-ho Joo.
“We thank the Peruvian Government, Navy and SIMA for granting us this opportunity for cooperation. We will cooperate with SIMA as the long term Strategic Partner to develop SIMA and Peruvian industrial capability, so that SIMA will become one of the key naval shipbuilder in South America.”
Through this contract, HHI has secured the status of the Strategic Partner of SIMA. As Strategic Partner, HHI will continue its cooperation with SIMA for the Peruvian Navy’s force development over the next 15 years, with a high likelihood of securing follow-up projects. In addition to four naval vessels to be procured through this contract, the Peruvian Navy plans to procure additional five Frigates, three OPVs, and two LCUs.