8 Billion Won Thai Frigate Contract... HD Hyundai Heavy Industries and Hanwha Ocean Compete

Market May Expand Up to 3 Trillion Won
Local Construction and Technology Transfer as Key Factors

HD Hyundai Heavy Industries and Hanwha Ocean are expected to go head-to-head in the bid to supply the next-generation frigate for the Royal Thai Navy, a contract worth 800 billion won.

According to industry sources on April 20, this project involves the procurement of a single 4,000-ton class frigate, with the total value reaching approximately 17 billion baht (about 800 billion won). As Thailand is considering additional vessels of the same class in the future, there is speculation that the overall market size could expand up to 3 trillion won. Previously, the Royal Thai Navy requested major global shipbuilders, including these two companies, to participate in the bidding, with proposals due by April 21.

The distinctive feature of this project is that, unlike the previous government-led “Warship Export One-Team” approach, both companies are participating independently. The Thai side requested individual participation from both firms, resulting in a competitive bidding structure rather than a single consortium.

The Royal Thai Navy requires at least 20% local construction and technology transfer, giving the project the characteristics of a “package-type defense business” that goes beyond simple export. Evaluation criteria are expected to include cooperation frameworks with local shipyards, industrial contribution, and follow-up maintenance, repair, and overhaul (MRO) capabilities.

Both companies are leveraging their respective overseas business experience in the bidding competition. HD Hyundai Heavy Industries has strengthened its position in the Southeast Asian market by winning consecutive orders for frigates and offshore patrol vessels (OPVs) through the Philippine Navy modernization program. The company is also credited with establishing operational reliability by delivering some vessels ahead of schedule.

Hanwha Ocean emphasizes its existing cooperative relationship with the Royal Thai Navy as a key strength. Since delivering the frigate “HTMS Bhumibol Adulyadej” in 2018, the company has built trust, and this vessel currently serves as the flagship, bearing the name of Thailand’s former king. Last year, both companies showcased export versions of their frigate models at a defense exhibition in Bangkok, focusing on expanding their local networks.

Industry insiders believe that, in addition to technological capabilities, local partnerships and cooperation structures will be decisive factors for winning the contract.

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