Hanwha Ocean outscores HD HHI, leads race in bid for KDDX construction

Hanwha Ocean outscored HD Hyundai Heavy Industries in the bid evaluation for Korea's next-generation destroyer program, moving closer to preferred bidder status.

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Scale model of the Korea Destroyer Next Generation displayed on a white platform at an exhibition.
A model of the Korea Destroyer Next Generation is displayed at an exhibition in Busan's Haeundae District on June 7, 2023.

Hanhwa Ocean's proposal scored higher than that of HD Hyundai Heavy Industries (HHI) in the bid for the construction of the Korea Destroyer Next Generation (KDDX) — the country's homegrown next-generation destroyer program — positioning the company as the preferred bidder

The KDDX is an approximately 7.8 trillion won ($5.1 billion) project to build six 6,000-ton Aegis-class destroyers using domestic technology.

"Hanwha Ocean received high marks for its proposal for the KDDX detailed design and lead-ship construction project due to [the company's] advanced naval vessel technology and project execution capabilities," Hanwha Ocean said on Thursday. "If Hanwha Ocean is ultimately selected as the preferred bidder, we will work closely with the Defense Acquisition Program Administration [DAPA] in line with the project procedures to make up for the delayed schedule and mobilize all of our vessel design and construction capabilities so that there is no disruption to [Korea's] maintenance of naval power."

The selection marks a decisive turn in a program that had drifted for more than two years. HD HHI and Hanwha Ocean had been locked in a contest for the project, with Hanwha Ocean having completed the concept design and HD HHI the basic one.

After the first tender was delayed when HD HHI declined to register by the May 14 deadline, the company reversed course and submitted a bid on May 27, setting up a head-to-head competition.

DAPA aims to complete a contract by July and deliver the lead ship to the Navy by the end of 2032.

"Particularly because the KDDX is a domestically built destroyer equipped with nine types of core localized development equipment, we will do our utmost to achieve world-class performance and quality through flawless systems integration," Hanwha Ocean said.

 

BY KIM MIN-YOUNG [[email protected]]