Hanwha Ocean(042660) won the contract for Thailand's next frigate construction project worth 700 billion won.
On the 8th (local time), the Royal Thai Navy said it selected Hanwha Ocean as the preferred negotiator for a contract to build one next-generation 4,000-ton-class frigate. The proposed price, including value-added taxes and other charges, is 16.73 billion baht (about 680 billion won).
In this bidding, four countries and six companies participated, including Hanwha Ocean and HD Hyundai Heavy Industries(329180) as well as firms from Singapore, Spain, and Türkiye. HD Hyundai Heavy Industries proposed about 40% local production but fell short.
Hanwha Ocean appears to have gained an edge by highlighting its delivery track record. The export-model frigate "Ocean-40F" that Hanwha Ocean proposed to Thailand is an upgraded version of the 3,700-ton Phumiphon Adunyadet, developed by its predecessor Daewoo Shipbuilding & Marine Engineering and delivered to the Royal Thai Navy.
The possibility of additional orders is also being discussed. To modernize its forces, the Royal Thai Navy plans to acquire a total of eight frigates, but only four are currently operational. Including follow-on orders, some expect the total contract size could reach up to 4 trillion won.
The Royal Thai Navy plans to hold an official briefing on the 18th to explain the specific selection criteria and evaluation results.