South Korea's Hanwha Systems Co. revealed on Friday its bid to provide its domestically developed combat management system (CMS) to six 2,400-ton class offshore patrol vessels (OPVs) commissioned by the Philippines. The lucrative export contract, valued at $29.5 million (39 billion won), bolsters Hanwha Systems' standing in the global defense market.
In a noteworthy addition to the deal, the tactical data link (TDL), a cutting-edge digital communications system enabling real-time sharing and dissemination of tactical information, will also be supplied for an additional $5 million (6.6 billion won). Consequently, the comprehensive contract's total value reaches an impressive $34.5 million (45.6 billion won).
This agreement solidifies Hanwha Systems' position as the primary CMS provider for a total of 13 Philippine naval vessels. Building on the company's previous achievements, which included exporting domestically developed combat systems to two Philippine Coast Guard (PCC) vessels last year, the contract encompasses the combat system projects for two 2,600-ton class Philippine frigates contracted in 2017 and the performance improvement project for three Philippine patrol vessels contracted in 2019. Notably, this marks the fourth successful export to the Philippine Navy by Hanwha Systems.
Looking ahead, Hanwha Systems has ambitious plans to actively engage in the Philippine Navy's modernization efforts, with a specific focus on forthcoming projects involving submarines, high-speed crafts and large landing ships (LPDs). This strategic move aligns with the Philippines' intensified drive to bolster its naval capabilities amidst escalating territorial disputes in the South China Sea and heightened military tensions in the Western Pacific region.
"Our company stands alone as the domestic leader capable of equipping exported vessels with combat systems that match the technological maturity of advanced countries," Hanwha Systems CEO Eoh Sungchul said. "We will leverage our competitive edge in the Korean defense industry, aiming to expand exports not only to Southeast Asia but also to the Middle East and Latin America."
Write to Hyung-Kyu Kim at
khk@hankyung.com
