Daewoo Shipbuilding & Marine Engineering Co. (DSME), a major shipbuilder in South Korea, released news on Friday (11st October) that it has signed a deal with the Republic of Korean (ROK) Navy worth US$924 million to design and build an upgraded submarine.
Under the deal with the Defense Acquisition Program Administration (DAPA), Daewoo Shipbuilding will deliver a 3,000-ton grade submarine to the South Korean Navy by 2026.
In 2016, Daewoo Shipbuilding won the design contract for the latest submarine under the Changbogo III-class Batch II project and completed it last year. It is currently building two submarines for the Navy following the order it secured in 2012 under the first project.
The company said that the new 3,000-tonne boat will not only be capable of conducting longer underwater operations but also be better armed and faster than previous variants, adding that it plans to use locally developed submarine parts to boost localization.
The Republic of Korea also intends to have nuclear powered submarine to strengthen its naval power according to the recent news.
Daewoo Shipbuilding also bagged a separate deal worth 446.5 billion won to build two liquefied natural gas carriers (LNG) for an American shipper.
The company said it plans to deliver two 174,000 cubic-meter size LNG carriers by September 2022.
With the latest deals, Daewoo Shipbuilding has clinched orders worth $4.27 billion this year, achieving 51 percent of its annual target of $8.37 billion.