HD Hyundai Heavy, Hanwha Ocean eye global warship orders in second half

HD Hyundai Heavy Industries and Hanwha Ocean are moving quickly to expand their footprint in the global warship market after losing out on Canada's submarine contract. Starting with Thailand's frigate project — whose preferred bidder is set to be announced by the end of this month — a string of major warship orders is expected to follow across Europe, the Middle East and Southeast Asia. Cooperation on US naval shipbuilding, meanwhile, appears to be taking concrete shape roughly a year after initial MASGA discussions began.

According to industry sources Tuesday, the Royal Thai Navy will announce the preferred bidder for its next-generation frigate project by the end of this month. The program calls for the construction of one 4,000-ton frigate at a cost of 800 billion won ($540 million), with the potential to grow to $2.17 billion, covering three follow-on vessels plus maintenance, repair and overhaul services.

HD Hyundai Heavy Industries and Hanwha Ocean, which competed as a joint team in Canada's submarine program (CPSP), will go head-to-head individually in the Thai contest. The South Korean government had initially sought to maintain the joint-team approach, but Thailand reportedly insisted on separate bids. "From Thailand's perspective, having each company compete independently maximizes competition between the two — which works in their favor," an industry official said. In total, six shipbuilders are vying for the contract, including firms from Singapore, Spain and Turkey.

HD Hyundai Heavy Industries is leading with a "local contribution" strategy, while Hanwha Ocean is banking on its track record with the Thai navy. HD Hyundai Heavy has highlighted its experience delivering frigates for the South Korean Navy's next-generation FFX program and supplying frigates and patrol vessels to the Philippine government. On top of that, it has proposed a 40 percent localization rate — twice what Thailand originally required. Hanwha Ocean, for its part, is drawing on its 2018 delivery of a 3,700-ton frigate to the Royal Thai Navy, proposing to build an upgraded version of that vessel.

After Thailand, Greece is likely to be the next battleground for the two shipbuilders. Greece is pursuing the procurement of at least four submarines, and both companies are investing heavily in local marketing efforts there.

HD Hyundai Heavy Industries has already established a working relationship with a Greek shipyard, signing an MOU last month with Skaramangas, Greece's largest shipyard, covering cooperation on Hellenic Coast Guard vessels and unmanned surface vessels. Hanwha Ocean took a more direct approach: CEO Eo Sung-cheol attended the Blue Strategy Summit 2026 in Greece on July 5 and delivered a presentation showcasing the company's warship-building capabilities.

Cooperation with the United States on naval shipbuilding is also gaining momentum. Earlier this month, the US government reportedly sent requests for information to South Korean shipbuilders covering combat vessels and replenishment oilers — the first time Washington has directly queried domestic shipbuilders about their naval capabilities since the MASGA discussions began.

Hanwha Ocean recently won a contract to build a missile range instrumentation vessel (MRIV) for the US military, designed to collect flight-test data on missiles. While the MRIV is not a combat ship, it is considered a key component of the US missile defense architecture. The win has significantly broadened Hanwha Ocean's foothold in the American naval market, industry observers say.

Demand for naval modernization is already a global trend, driven by the US-China rivalry for maritime dominance and the fallout from the war in Ukraine. Major warship programs are expected to continue rolling out across Southeast Asia, Europe and beyond well into the coming years.

Egypt identified South Korea as a preferred partner early on and has been in negotiations since March over the acquisition of four new submarines. In Saudi Arabia, discussions are underway on the purchase of four 3,000-ton submarines worth around 6 trillion won. The Philippines is also considering acquiring two mid-sized submarines worth 2 trillion won as part of its naval modernization drive.

klee@heraldcorp.com