KAI Signs 1 Trillion KRW Contract with Military for 4th Batch of Surion Production

Surion Repair Parts Performance-Based Logistics Support Contract Also Signed

[Asia Economy Reporter Yu Je-hoon] Korea Aerospace Industries (KAI) announced on the 28th that it has signed the 4th mass production contract for Surion (KUH-1) worth 1.05 trillion KRW with the Defense Acquisition Program Administration (DAPA).

Surion is a domestically produced helicopter developed over six years starting in 2006 to replace the Army's aging UH-1H and 500MD helicopters. Approximately 1.3 trillion KRW was invested in its development. Since the initial delivery in 2012, Surion has proven its performance by carrying out troop transport and air assault missions for the military.

In addition, KAI signed the first performance-based logistics (PBL) contract worth 112.1 billion KRW for Surion repair parts with DAPA. PBL is a system where specialized companies take full responsibility for logistics support of contracted items and receive performance bonuses or penalties based on achievement, and it is one type of maintenance, repair, and overhaul (MRO) contract.

This is the first PBL contract for Surion. KAI will be responsible for all related tasks including demand forecasting, acquisition, transportation, delivery, and repair of 1,207 Surion repair parts required by the Army.

A KAI official stated, "The procurement and maintenance lead time for Surion helicopter repair parts will be significantly shortened compared to before, which is expected to improve operational availability and reduce operating and maintenance costs," adding, "We will continue to provide unwavering support for the stable operation and maintenance of domestically produced helicopters."

This content was produced with the assistance of AI translation services.