Hanwha Ocean was selected as the preferred negotiating partner for the detailed design and lead ship construction of the Korea Destroyer Next Generation (KDDX) program.
According to the defense industry on the 2nd, the Defense Acquisition Program Administration (DAPA) on the 1st notified Hanwha Ocean and HD Hyundai Heavy Industries, respectively, of the results determining the negotiation candidates and their priority order. In the previous evaluation, Hanwha Ocean scored a total of 93.9542 points, 0.5867 points ahead of HD Hyundai Heavy Industries.
HD Hyundai Heavy Industries on the 22nd of last month submitted an objection to the evaluation results for the DDX detailed design and lead ship construction proposal. However, DAPA the day before sent an official letter to HD Hyundai Heavy Industries titled "Reply to objection," conveying the position that "it is difficult to accept the request for reconsideration."
With the objection process concluded, DAPA selected Hanwha Ocean, which received the higher score in the evaluation, as the preferred negotiating partner. DAPA and Hanwha Ocean plan to negotiate specific contract amounts and timelines starting this month. DAPA aims to sign the contract by the end of next month or in early Aug.
KDDX is a program to invest a total of 7.8 trillion won to build six 6,000-ton-class destroyers with domestic technology. Shipbuilding programs typically proceed in the order of concept design, basic design, detailed design and lead ship construction, and follow-on ship construction. For KDDX, Hanwha Ocean handled the concept design, and HD Hyundai Heavy Industries took charge of the basic design.
Originally, KDDX was to complete the basic design in Dec. 2023 and begin detailed design and lead ship construction starting in 2024. But as competition between the two companies overheated, DAPA could not reach a conclusion, and the program schedule was delayed by about two years.
A DAPA official said, "We will do our best to ensure that there are no disruptions to the fielding schedule."
Hanwha Ocean said, "We feel a heavy sense of responsibility at being selected as the preferred negotiating partner for the KDDX detailed design and lead ship construction project," adding, "We will engage faithfully in negotiations with the government and do our best to normalize the program."