South Korean shipbuilders form collaboration for export of naval vessels

South Korea's Defence Acquisition Program Administration (DAPA) has entered into a memorandum of understanding (MOU) with local shipbuilders Hanwha Ocean and HD Hyundai Heavy Industries (HHI) for the establishment of a ship export collaboration.

The MOU stipulates that DAPA, Hanwha Ocean and HHI will form what DAPA calls a "One Team" that will make South Korean-developed naval vessels available for overseas customers.

HHI will focus on exports of surface ships while Hanwha Ocean will be responsible for delivery of submarines.

Also, under the MOU, the two companies will support each other where appropriate. DAPA said this is one way of maximising the two companies' strengths while increasing the efficiency of business promotion through resource allocation and technology sharing.

HHI has been involved in the manufacture of naval ships for overseas customers. The company is presently assisting in the construction of four new surface ships for the Peruvian Navy and has also worked on new corvettes and frigates for the Philippine Navy.