HD Hyundai Heavy Industries: A New Era of Naval Cooperation in Latin America

HD Hyundai Heavy Industries (HD HHI), a leading South Korean shipbuilder, has marked a significant milestone in its global expansion with the commencement of warship construction in Peru. The Peru Warship Project, valued at approximately KRW 640.6 billion (USD 463 million), involves the construction of four vessels, including a frigate, an offshore patrol vessel, and two amphibious landing ships, at Peru's state-run SIMA Shipyard. The project, which began with a joint launch ceremony on January 10, 2025, is expected to deliver the first vessel in 2026, with subsequent deliveries following.

The Peru Warship Project is a testament to the growing cooperation between Korea and Peru in the defense sector. The project, achieved through collaboration between the Korean government and private enterprises under the "Team Korea" initiative, is seen as a model case for K-Defense's global expansion. The project has deepened defense cooperation between the two countries, with HD HHI committed to driving the project to success through technological excellence and trust.

The project is expected to have a significant impact on Peru's naval modernization and economic growth. The construction of modern warships will enhance the Peruvian Navy's capabilities and help modernize its fleet. Peru's President Dina Boluarte stated, "We expect this project with HD HHI to promote the modernization of the Peruvian Navy and contribute to the nation's economic growth." The project is also expected to create jobs and stimulate local economic activity, as the vessels will be constructed locally at SIMA Shipyard with the collaboration of HD HHI.

The project is part of Peru's larger fleet modernization initiative, which aims to build 23 ships, further boosting the country's economic growth and maritime industry. The project also involves the transfer of advanced technology and know-how from HD HHI to SIMA Shipyard, which will enhance Peru's industrial capabilities and support long-term economic growth.

The "Team Korea" initiative played a significant role in facilitating the defense export contract between HD Hyundai Heavy Industries and Peru's SIMA Shipyard. This collaborative effort between the Korean government and private enterprises, including the Korean Ministry of Defense, Defense Acquisition Program Administration (DAPA), Korean Embassy in Peru, and Korea Trade-Investment Promotion Agency (KOTRA), was instrumental in securing the contract for HD Hyundai. The initiative emphasizes cooperation between the company and the South Korean government, which was pivotal in securing the contract. The successful bid for the Peruvian project was significantly influenced by the Team Korea strategy, with active governmental support during the bidding process, including a crucial endorsement from the South Korean ambassador to Peru, playing a critical role in securing the contract.

In conclusion, the Peru Warship Project marks a significant milestone in HD Hyundai Heavy Industries' global expansion and a new era of naval cooperation between Korea and Peru. The project is expected to contribute to Peru's naval modernization and economic growth, while also strengthening bilateral relations and facilitating technological transfer. The success of the project is a testament to the effectiveness of the "Team Korea" initiative in facilitating defense export contracts and promoting international cooperation in the defense sector.