South Korean Shipbuilders Target Global Naval Markets
South Korean shipbuilders are setting their sights on the South American market for new opportunities in warship exports. After losing the bid for a Canadian submarine project with a record-high cost, domestic shipbuilders are now looking beyond Asia to countries in South America. This shift comes as major nations worldwide are ramping up their naval forces and defense industries.
Hanwha Ocean and HD Hyundai Industries Making Moves in Thailand, Philippines, and South America
Hanwha Ocean has emerged as a strong contender for the Royal Thai Navy’s project to introduce a 4,000-ton class next-generation frigate. With a project cost totaling 4 trillion won (approximately $2.81 billion), Hanwha Ocean’s track record and experience with Thailand are proving beneficial in the competition for orders. However, delays in the final operator announcement have arisen due to suspicions of preferential treatment.
In the Philippines, HD Hyundai Industries is targeting the follow-up frigate project as part of the Philippine Navy’s military modernization efforts. HD Hyundai’s successful delivery of guided-missile frigates to the Philippine Navy and its established local cooperation network position it well for additional orders.
In South America, both Hanwha Ocean and HD Hyundai Industries are exploring opportunities. HD Hyundai is pursuing submarine orders in Peru and Chile, aiming to strengthen its presence in the South American defense market. Meanwhile, Hanwha Ocean is eyeing the Chilean market for submarine replacements and multi-purpose frigate construction projects.
Domestic Shipbuilders Positioning for US Market Expansion
Amidst potential changes in the US market, domestic shipbuilders are gearing up for increased US business. Samsung Heavy Industries is collaborating with General Dynamics NASSCO to design the next-generation combat logistics force project and provide technical support for future local ship construction in the US. Hanwha is also making strategic moves to secure a local production base in the US, aiming to enhance its warship construction capabilities and competitiveness for orders.
As the global demand for warships continues to rise, industry experts are closely monitoring the market for new opportunities. With a focus on large-scale projects overseas, South Korean shipbuilders are prepared to actively participate in emerging opportunities for submarines and frigates worldwide.
