HD Hyundai Heavy Industries will jointly develop submarines with Peru.

HD Hyundai Heavy Industries recently announced on the 3rd that it signed a Letter of Intent (LOI) for the joint development and construction of submarines with Peru's state-owned SIMA Shipyard at its headquarters in Ulsan.

The two companies signed a Memorandum of Understanding (MOU) at the Asia-Pacific Economic Cooperation (APEC) summit held in Peru last November and an agreement at the International Defense & Disaster Response Technology Exhibition in April this year. The company explained, "This LOI is a step to concretize the agreements made so far, linked with the Gyeongju APEC 2025."

According to the LOI, the two companies will discuss cooperation plans for the joint development and production of Peru's next-generation submarines, as well as detail the scope of technology transfer and other industrial cooperation. Once discussions are finalized, actual construction will commence.

The two companies are aiming to sign a joint development contract within this year and are currently in discussions. Once development begins, submarines will be developed and designed at the Ulsan HD Hyundai Heavy Industries yard in collaboration with the Peruvian Navy and SIMA technicians.

HD Hyundai Heavy Industries is jointly constructing a total of four vessels, including multipurpose frigates, patrol ships, and landing support ships, with SIMA Shipyard. During this process, they have reportedly built mutual trust by operating technology transfer and local workforce training programs.

Luis Silva, President of SIMA Shipyard, stated, "This joint development LOI is the first project to jointly develop a full-fledged submarine for the South American navy," and evaluated that "Peru will promote self-reliance in shipbuilding and defense technology in the South American region, and HD Hyundai Heavy Industries will further expand its influence in the global defense market."

Joo Won-ho, President of the Naval & Medium Vessel Business Division at HD Hyundai Heavy Industries, also commented, "This joint development is expected to help strengthen the Peruvian Navy's capabilities by leveraging HD Hyundai Heavy Industries' accumulated submarine design and construction expertise."

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