SEOUL, Oct. 11 (Korea Bizwire) — Daewoo Shipbuilding & Marine Engineering Co., a major shipbuilder in South Korea, said Friday it has signed a deal worth 1.1 trillion won (US$924 million) to design and build an upgraded submarine for the country’s Navy.
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.
Daewoo Shipbuilding said the latest submarine will allow longer underwater operations and be faster than the previous version. It plans to use locally developed submarine parts to boost localization.
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.