HD Hyundai Heavy Industries is accelerating its naval expansion in Latin America, showcasing its self-developed submarine at Peru’s SITDEF 2025 defense exhibition this week.
The South Korean shipbuilder signed a memorandum of agreement with Peru’s state-owned SIMA Shipyard for joint submarine development, building on a memorandum of understanding signed during last year’s APEC meeting. The agreement centers on developing a customized 1,500-ton submarine based on Hyundai’s HDS-1500 model.
The submarine development follows HD Hyundai’s landmark $463 million contract signed last April to build four naval vessels with SIMA, establishing the company as a strategic partner of the Peruvian government and navy for the next 15 years. The HDS-1500 submarine received design approval in principle from Norwegian-German classification society DNV on April 25.
Rising global geopolitical risks have increased demand for defense vessels, with positive responses from governments regarding the technological capabilities and competitive pricing of special vessels. The company is targeting new submarine opportunities in multiple markets including Peru as part of its broader “Pan-Pacific Belt Vision.”
Ju Won-ho, head of HD Hyundai’s Special Ship Business, said the company is expanding from surface ships to submarines based on its partnership with the Peruvian Navy, positioning Peru as its base for entering the Latin American market.
