South Korea’s HD HHI to Develop Submarine with Peru

South Korean shipbuilder HD Hyundai Heavy Industries (HD HHI) and Peru’s SIMA Shipyard have joined forces to create a new generation of submarines. This partnership is a big step forward in defense cooperation between South Korea and Peru, showing a strong bond of friendship. The agreement was made official at the “APEC 2024” summit in Lima, Peru, with leaders from both countries there to witness the signing.

Building on Success: From Ships to Submarines

HD Hyundai announced that the Memorandum of Understanding (MoU), signed on November 16, focuses on developing submarines specifically for the Peruvian Navy. This agreement follows a successful project where HD Hyundai and SIMA Shipyard teamed up to build four ships in Peru. The value of that deal was 640.6 billion Korean Won, the biggest defense export in Latin American history.

Now, with this new MoU, the two companies will focus on building submarines that meet Peru’s needs. This means using local resources and skills, helping to modernize SIMA Shipyard, and advancing Peru’s shipbuilding industry.

Leaders at the Signing Ceremony

The MoU was signed in the presence of both South Korea’s President, Yoon Suk Yeol, and Peru’s President, Dina Boluarte. Other important figures, like Joo Won-ho, Vice President of HD Hyundai Heavy Industries, and César Benavides, CEO of SIMA Shipyard, also attended the event. Around sixty other officials from both governments were there, showing how important this partnership is to both nations.

Strengthening Peru’s Naval Industry

The goal of this agreement is clear: replace old ships and build stronger cooperation between South Korea and Peru. For HD Hyundai, this is more than just a business deal. The company is committed to helping SIMA Shipyard become more advanced and modern. This will include sharing technology and working closely with the Peruvian government and navy on future projects.

The MoU also positions HD Hyundai as a “strategic partner” for future shipbuilding projects in Peru over the next 15 years. This status gives them an edge in securing follow-up contracts, making them the preferred choice for the Peruvian Navy.

Celebrating the Partnership

The connection between the two countries was further celebrated when the presidents of South Korea and Peru took part in a special ceremony. They signed nameplates that will be placed on the ships currently being built by HD Hyundai and SIMA Shipyard. This act symbolized the growing friendship and successful cooperation between the two nations.

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A Boost to Local Industry

One major focus of this partnership is localization. HD Hyundai aims to make sure that Peru’s shipbuilding industry grows stronger through this collaboration. By setting up a local office in Peru in September, HD Hyundai has shown its long-term commitment. They started the ship construction in October, with the first equipment shipment already sent off.

This joint effort is also part of a larger strategy called “Team Korea.” This team includes different South Korean agencies like the Ministry of National Defense, the Republic of Korea Navy, and the Korea Coast Guard, among others. Working together, they want to make sure that the partnership with Peru is successful.

Why It Matters

This deal is more than just building submarines. It’s about two countries working together, sharing knowledge, and growing stronger together. For Peru, it’s a chance to modernize its naval fleet and boost local skills and technology. For South Korea, it’s an opportunity to strengthen ties with a South American ally and showcase their expertise in shipbuilding and defense.

As HD Hyundai continues to collaborate with Peru, they aim to play a key role in the region’s defense industry. With a strong commitment to localization, technology sharing, and industrial growth, this partnership is set to benefit both nations for years to come.