Latest news with #KDDX
Korea Herald
2 days ago
- Business
- Korea Herald
Korean shipbuilding rivals unite for Poland's W8tr submarine bid
HD Hyundai Heavy Industries and Hanwha Ocean, maritime-to-defense competitors, are forming an alliance to win Poland's 8 trillion won ($5.8 billion) worth submarine bid, aiming to resolve their decades-long rivalry to boost global exports. According to industry sources Wednesday, the two companies are seeking to land Poland's Orka Project by presenting themselves as a South Korean consortium, marking their first partnership in pursuing a large-scale export contract. The project includes construction and maintenance, repair and operations (MRO) of three 3,600 metric ton submarines for the Polish Navy. While project details remain undisclosed, industry insiders anticipate that Poland will select a preferred bidder by the second quarter and make a final decision by September. Although HD Hyundai and Hanwha had already submitted separate proposals in November 2023 before allying this year, industry insiders suggest that the Polish government might view their unified effort, which combines the strengths of both companies, as enhancing technological competitiveness. 'HD Hyundai Heavy Industries and Hanwha had proposed 2,300-ton and 3,000-ton vessels, respectively, to Poland. This dual approach can address the various needs of the Polish government, increasing the likelihood of Korea securing the contract on a national level,' said a source on condition of anonymity. In February, HD Hyundai and Hanwha signed a memorandum of understanding to establish a joint team with the state-run Defense Acquisition Program Administration for ship export projects. Under this agreement, HD Hyundai will lead surface ship export initiatives, while Hanwha will focus on submarine exports, with each company supporting the other. In the following month, they submitted a proposal to secure a 20 billion won Canadian submarine project. The rival shipyards' belated partnership comes after Korea's unsuccessful bid for Australia's new frigate project last year. HD Hyundai and Hanwha pursued the project separately, only to lose to unified teams from Japan and Germany. DAPA reportedly mediated the ongoing feud between the two companies over the 8 trillion won next-generation Korean destroyer (KDDX) bid, urging collaboration to increase their chances of landing global export bids. Despite the Korean government's efforts, the shipbuilders maintain their competitive standoff on the Korean Navy's advanced warship development project. HD Hyundai, the primary contractor selected by DAPA for the basic design of the KDDX in 2020, faced a setback when Hanwha filed a police complaint in March, alleging that HD Hyundai executives were involved in leaking Hanwha's confidential materials related to the KDDX bid. In November, Hanwha withdrew the complaint, citing 'mutual support and cooperation' for the country's shipbuilding industry. However, the company did not retract its application for the Ministry of Trade, Industry and Energy's KDDX contractor designation process this year. While DAPA oversees the project, the industry ministry is in charge of officially designating the contractor. DAPA postponed the selection process multiple times, from April until after the presidential election. 'Although collaborating as a joint team for global exports is a reasonable strategy for both companies, with growing maritime security threats from North Korea, it is vital for the government to prioritize the rapid deployment of advanced warships like the KDDX,' the source said. 'The industry calls for swift and decisive action to achieve the fastest possible operations of those ships.'
Korea Herald
01-05-2025
- Business
- Korea Herald
Decision time for Korea's next-gen destroyer program
The Korean Next-Generation Destroyer, or KDDX, program, has been pushed back once again, dampening the country's roadmap to strengthen its naval forces and letting the fight between its top two shipbuilders -- Hanwha Ocean and HD Hyundai Heavy Industries -- intensify. The KDDX, a 7.8 trillion won ($5.5 billion) project to build six 6,000-ton-class next-generation Aegis-equipped destroyers, was supposed to have a conclusion on who will build these state-of-the-art warships using homegrown technologies by July last year. The KDDX program is crucial for not only strengthening the country's naval forces but also enhancing its shipbuilding capabilities. The KDDX program has four steps of concept design, basic design, detail design and building the first ship and building the rest of the ships. Hanwha Ocean won the contract for concept design in 2012 while HD HHI secured the contract for basic design. Industry experts expected HD HHI to ink the detail design contract to build the first ship but Hanwha Ocean raised the issue of the military secret mishandling of some HD HHI employees and called for a competitive bidding process. The Defense Acquisition Program Administration has irresponsibly dragged out the selection process instead of taking the helm of the matter. The DAPA handed over the authority to designate defense firms for the KDDX program to the Ministry of Trade, Industry and Energy, which later designated both Hanwha and HD Hyundai as suitors. In the meantime, Hanwha and HD Hyundai has been going back and forth both publicly and behind the scenes to claim that each of them should be the one to take charge of the KDDX program. The rivalry between the two conglomerates has continued to intensify while the DAPA did not make up its mind. Some even say that one of the reasons Korea came up short in the bidding for the Australian government's 10-trillion-won project to acquire 11 frigates was the growing feud between Hanwha and HD Hyundai. To be fair, choosing the right builder for the KDDX is not an easy task but DAPA's hesitation and naive approach have done little to resolve the issue. As the government is seemingly being careful and thorough in sourcing out the naval empowerment project, it must recognize that the drifting situation could be harming the reputation of the country's maritime defense industry at a time when the US is seeking Korea's cooperation in the shipbuilding sector. About 400 small to medium-sized companies are also involved in the KDDX project as they work with the shipyards of Hanwha and HD Hyundai. The longer the DAPA delays its final say, the more financial difficulties await these local firms, ultimately hurting the country's shipbuilding industry as a whole. Now that the DAPA has failed to make the decision by the last day of April when it held a meeting of the defense project committee, the fate of the KDDX is likely to be decided after the presidential election on June 3 and the new defense authorities are appointed, meaning that the project is expected to be postponed for over a year. Although it is already late to make the call, the DAPA should recognize that being late is better than being never.
Korea Herald
13-03-2025
- Business
- Korea Herald
Hanwha Ocean eyes KDDX project with smart ship, propulsion technologies
South Korean shipbuilder Hanwha Ocean announced Thursday that it is ramping up its capabilities to participate in Korea's next-generation destroyer or KDDX project. Scheduled for completion in 2031, the 7.8 trillion won ($5.4 billion) project aims to develop a state-of-the-art naval combat system, featuring six 6,000-ton Aegis-equipped destroyers built using Korea's homegrown technologies. The selection of a contractor for the detailed design and construction of the fleet's lead ship, originally expected in July 2023, is now set for April 2024. Advancing all-electric propulsion for KDDX Hanwha Ocean is working to acquire the technology needed to produce electric propulsion systems for surface vessels, a critical component for building all-electric destroyers. In Korea, this technology has only been implemented in submarines, specifically the Jangbogo KSS-III Batch-I and Batch-II, both built by Hanwha Ocean. In contrast, global naval forces, including those of the US and UK, have already deployed all-electric warships. The shipbuilder said the KDDX destroyers will be powered by high-output 25-megawatt motors, emphasizing that electrifying all ship systems, including weapons and propulsion, will enhance operational capabilities and potential applications. Last year, Hanwha Ocean successfully completed a simulated test for stable power control in an all-electric military vessel. The company has also developed a hybrid propulsion system integrating gas turbines and motors for the Ulsan-class Batch-II surface vessels. Smart bridge technology for next-gen warships Hanwha Ocean is also advancing smart bridge technology for military ships, inspired by aircraft cockpit designs. These smart command spaces feature ergonomic layouts to improve crew efficiency and operational convenience, ultimately reducing staffing requirements on the bridge. The company has already integrated a smart bridge into the conceptual design of Korea's Auxiliary Training Ship II. Additionally, the Korean Navy's auxiliary submarine rescue ship, Ganghwado, delivered by Hanwha Ocean last year, was equipped with a control console and operational display that integrates various functions. Enhancing rapid response and cybersecurity in naval warfare As part of the KDDX project's basic design, Hanwha Ocean has proposed integrating various control systems into a single, unified network — a core technology expected to define the future of military vessels. Traditionally, military ships rely on separate systems for functions such as communications and weapon management. Hanwha Ocean's unified system aims to enhance decision-making and responsiveness in high-intensity combat situations. Hanwha plans to extend this integrated approach to the 5th and 6th Ulsan-class Batch-III frigates, which it will construct, as well as the 1st and 2nd ships of the Ulsan-class Batch-VI. To address cybersecurity risks associated with an integrated naval network, Hanwha Ocean and its defense affiliate, Hanwha Systems, have developed a cybersecurity system for military vessels. This system has been certified by a US-based ship classification society, making it the first vessel cybersecurity system in Asia to receive such recognition.
