Local media reports say the result of the Royal Thai Navy's next-generation frigate procurement, in which Hanwha Ocean and HD Hyundai Heavy Industries are competing, will be announced soon. Observers say the field has narrowed from six bidders to a head-to-head race between Hanwha Ocean and HD Hyundai Heavy Industries.
Hanwha Ocean is highlighting its experience delivering a frigate to the Royal Thai Navy, while HD Hyundai Heavy Industries is pointing to its track record exporting ships to the Philippines and Peru as they vie for the deal. If selected as the builder for this frigate program, the winner could gain an advantage not only for follow-on orders from the Royal Thai Navy but also in expanding its foothold in the Southeast Asian naval ship export market, according to projections.
As of the 26th, according to the shipbuilding and defense industries and local Thai media reports, the Royal Thai Navy's evaluation committee has completed its review of the proposals submitted by bidders. The Royal Thai Navy spokesperson said on the 16th, "The process for introducing a new frigate has entered the final stage, and we expect a conclusion in the near future."
The Royal Thai Navy is pushing a project to introduce one 4,000-ton(t)-class next-generation frigate to strengthen its capabilities. The project budget is 17.5 billion baht (about 800 billion won). Because the Royal Thai Navy aims to increase its frigate fleet from the current four to eight by 2037, there is a strong possibility it will place additional orders for ships of the same class.
The Royal Thai Navy sent requests for proposals to 11 shipyards worldwide, and six firms submitted proposals in April this year. Hanwha Ocean, HD Hyundai Heavy Industries, Spain's Navantia, Singapore's ST Engineering, and Türkiye's ASFAT and TAIS are competing.
Hanwha Ocean is seen as having strengths in cooperation experience and follow-on support with the Royal Thai Navy, as it exported a frigate (the Bhumibol Adulyadej) to the service in 2018. The Bhumibol Adulyadej is currently operated as the Royal Thai Navy's flagship.
In the next-generation frigate procurement the Royal Thai Navy is pursuing, Hanwha Ocean is known to have proposed the 4,000t-class export frigate "OCEAN-40F," which enlarges the hull and strengthens the weapons system based on the Bhumibol Adulyadej. Hanwha Ocean unveiled a model of the "OCEAN-40F" at the "D&S 2025" defense exhibition held in Bangkok in November last year. Earlier, in June last year, at the invitation of the Republic of Korea Navy, a Royal Thai Navy delegation visited Hanwha Ocean's Geoje shipyard to tour construction sites.
A Hanwha Ocean official said, "We incorporated specific requirements into the design based on feedback from the Royal Thai Navy, which operates the Bhumibol Adulyadej."
HD Hyundai Heavy Industries touts its strength in exporting frigates to countries including the Philippines and Peru. HD Hyundai Heavy Industries is known to have proposed to the Royal Thai Navy a model based on the latest export frigate HDF-3600 delivered to Peru. HD Hyundai Heavy Industries is jointly building the HDF-3600, as well as offshore patrol vessels and landing ships, at Peru's state-owned SIMA shipyard.
In October last year, at Thailand's "D&S 2025" defense exhibition, HD Hyundai Heavy Industries displayed models of three 3,000t-class export frigates (HDF-3600, HDF-3200, HDF-4000), emphasizing its extensive ship export experience to the Thai side. Of these, the company says the HDF-3200 is a model delivered to the Philippine Navy with proven operational capability.
The Royal Thai Navy sees offset trade (compensation accompanying weapons purchases) proposed by bidders as a key evaluation factor. Thailand requires at least 20% of the equipment to be installed on the frigate to be produced locally. The demand is to raise the share of local company participation. Technology transfer, workforce development, and partial reinvestment of the project budget are also major conditions Thailand requires. The strategy is to use the ship procurement program as a springboard for advancing Thailand's shipbuilding industry and strengthening the navy's capabilities.
Industry watchers say the outcome of this Royal Thai Navy frigate competition will significantly influence how Southeast Asian countries structure their naval ship procurement programs. A shipbuilding industry official said, "As Southeast Asian navies consider introducing frigates to bolster maritime security and capabilities, Thailand's level of offset demands could become the minimum standard going forward."