Samkang M&T Secures Order for Two Latest-Model Escort Ships Worth 705.1 Billion KRW

Great Success in Consecutive Orders for 3,500-Ton Large Vessels
Exceeding This Year's Special Ship Order Targets

Perspective view of the new Ulsan-class frigate BATCH-III. [Source=Defense Acquisition Program Administration]

[Asia Economy Reporter Cha Wanyong] Samkang M&T, a subsidiary of SK Ecoplant, announced on the 17th that it has signed a contract with the Defense Acquisition Program Administration to build the latest 3,500-ton class frigates, the Ulsan-class BATCH-Ⅲ follow-up ships (Nos. 3 and 4). The total contract amount is 705.17 billion KRW.

The Ulsan-class BATCH-Ⅲ follow-up ships are state-of-the-art frigates measuring 129 meters in length, 15 meters in width, and capable of a maximum speed of 30 knots (55 km/h). They have enhanced air defense and anti-submarine detection capabilities to replace aging frigates and patrol ships.

This shipbuilding contract was awarded through a competitive bidding and qualification review process, with a weighting of 30% price and 70% technology. In the competitive bidding, Samkang M&T submitted a bid of 705.17 billion KRW, which is close to 88% of the planned price (805.9 billion KRW) set by the Defense Acquisition Program Administration on the 16th of last month (87.5% of the planned price). Subsequently, it passed the qualification review evaluating performance, technical capability, and management status, securing the final contract.

Since being designated as a major defense contractor in the shipbuilding sector at the end of 2017, Samkang M&T has actively participated in building naval vessels and Korea Coast Guard ships. In March 2019, it acquired the defense division of STX Offshore & Shipbuilding, boosting its shipbuilding technology and expertise. Alongside its proven global competitiveness in the offshore wind substructure sector, the company plans to build trust in the market for special vessels and other shipbuilding projects going forward.

In fact, Samkang M&T has demonstrated competitiveness in the large warship market with displacements over 3,000 tons, including the 3,000-ton class Coast Guard patrol ship ordered in August last year, the 3,500-ton class Ulsan-class BATCH-Ⅲ follow-up ship (No. 2) ordered in December last year, and the recently contracted Ulsan-class BATCH-Ⅲ follow-up ships (Nos. 3 and 4). The 660 billion KRW target for special vessel orders, including warships, set for this year has already been exceeded.

Along with establishing a factory near the Goseong shipyard, direct hiring of personnel is continuously progressing. As of September this year, the number of direct employees increased by about 25% compared to the end of last year. The company plans to prepare for uninterrupted shipbuilding by recruiting skilled design personnel and specialists in various fields.

Samkang M&T is also continuously generating results in the offshore wind substructure sector. It was selected for the basic design consortium for the 'Gwisin-go-rae 3' floating offshore wind power complex being developed off the coast of Ulsan, and signed an exclusive supply contract worth approximately 600.7 billion KRW for substructures at the Hai Long offshore wind farm project in Taiwan. Thanks to these achievements, operating profit in the first half of this year reached 37.5 billion KRW, more than doubling compared to the same period last year.

Lee Seung-chul, CEO of Samkang M&T, stated, “Samkang M&T has accumulated capabilities by successfully building over 20 special vessels recently, including three Ulsan-class frigates, nine guided missile fast attack crafts, and eleven Korea Coast Guard patrol ships. We will do our best to contribute to strengthening national defense industry competitiveness and enhancing the Republic of Korea Navy’s power through the successful construction of the newly contracted Ulsan-class BATCH-Ⅲ follow-up ships (Nos. 3 and 4).”

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