By securing a frigate order from the Philippine Navy, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding business, has exceeded its annual new ship order targets for five consecutive years.
On December 26, HD Hyundai Heavy Industries, a subsidiary of HD KSOE, signed a contract with the Philippine Department of National Defense to build two 3,200-ton frigates. The total contract value is 844.7 billion won (approximately $578 million), with each frigate costing about $289 million. Delivery to the Philippine Navy is scheduled for the second half of 2029.
Including the order for two frigates, HD KSOE has secured 129 new ship orders worth approximately $18.16 billion so far this year, achieving 100.6% of its annual order target of $18.05 billion.
This marks the fifth consecutive year since 2021 that HD KSOE has exceeded its order targets, with fulfillment rates reaching 153.1%, 137.9%, 143.4%, and 154.9% from 2021 to 2024 respectively.
By ship type, it includes 7 liquefied natural gas (LNG) carriers, 6 LNG bunkering ships, 11 liquefied petroleum gas (LPG)/ammonia carriers, 2 ethane carriers, 75 container ships, 18 oil tankers, 8 chemical tankers, and 2 frigates.
The two frigates being built by HD Hyundai Heavy Industries are part of the Philippine Department of National Defense’s second-phase frigate project. This order is based on the 2,600-ton Jose Rizal-class and 3,200-ton Miguel Malvar-class frigates previously delivered to HD Hyundai Heavy Industries. The new ships will be built to the same specifications as the 3,200-ton BRP Diego Silang, which was delivered this year.
The merger of HD Hyundai Heavy Industries and HD Hyundai Mipo has recently been completed, with both entities now focusing on enhancing their competitiveness in the naval vessel sector. According to the plan, HD Hyundai Heavy Industries intends to integrate its existing shipbuilding expertise with HD Hyundai Mipo’s dock facilities, equipment, and personnel resources tailored for naval vessel construction, thereby further strengthening its competitive edge in naval shipbuilding.