STX CEO Park Sang-jun, right, and Hyundai Rotem CEO Lee Yong-bae, second from right, pose with Peruvian President Dina Boluarte, center, and other participants at the signing ceremony for a strategic partnership agreement between the South American country and the two Korean companies at the Peruvian Army headquarters in Lima, Monday (local time). Courtesy of STX
STX signed a contract with the Peruvian armory on Monday (local time) to supply Hyundai Rotem's K808 wheeled armored vehicles, the Korean trading firm said Wednesday.
The first-ever export of Korea-made wheeled armored vehicles came as STX and Hyundai Rotem were selected on April 30 (local time) as the preferred bidder for a project to enhance the Peruvian Army's mobility.
Under the contract, 30 wheeled armored personnel carriers worth $60 million will be delivered to the Peruvian Army by the end of 2025. In addition, the Korean companies are able to supply 90 additional wheeled armored vehicles for various purposes, such as infantry fighting, command and anti-aircraft defense.
STX and Hyundai Rotem also obtained the status of preferred suppliers of various military vehicles for the Peruvian armed and police forces.
“Tonight we are witnessing a significant milestone on the path towards strengthening our industry, especially the defense sector,” said Peruvian President Dina Boluarte, who attended the signing ceremony. “Thanks to this agreement, a vehicle assembly plant will be installed at the FAME (Army Weapons and Ammunition Factory) headquarters, where a wide range of cutting-edge special units will be produced.”
The president thanked the Korean companies, asking more foreign companies to invest in Peru. Korean Ambassador to Peru Choi Jong-uk also highlighted the bilateral cooperation between Peru and Korea, especially in the defense industry.
STX CEO Park Sang-jun said: “This strategic partnership agreement is significant as it expands our presence in the land defense market, following our expansion in the naval defense market.”
Since 2013, STX has participated in $120 million worth of the Peruvian patrol vessel project.
Last month, HD Hyundai Heavy Industries signed a 640.6 billion won ($463 million) contract with SIMA, a Peruvian state-owned shipyard, for joint production of one 3,400-ton frigate, one 2,200-ton offshore patrol vessel (OPV) and two 1,400-ton amphibious warfare ships in Peru.
The deal is the largest among naval ship orders that any Latin American country has placed with a Korean company so far.
As the contract makes the Korean shipbuilder a strategic partner of the Peruvian government and navy for the next 15 years, the company was chosen as the preferred bidder to build five additional frigates, three OPVs and two amphibious warfare ships for the South American country's navy.
The Korean firm also vowed to make the SIMA shipyard its regional foothold in Latin America.
For cooperation with the Peruvian Air Force, Korea Aerospace Industries exported 20 KT-1P trainer jets to the South American country between 2014 and 2017. The Korean aircraft maker has also promoted the FA-50 light combat aircraft in Peru over the past few years.