South Korean shipbuilder HD Hyundai Heavy Industries (HD HHI) has signed a letter of intent (LOI) with Peru’s state-owned SIMA Peru to collaborate on the design and construction of submarines for the Peruvian Navy.
The LOI, formalized in connection with APEC 2025, follows a series of prior agreements between the two companies: a Memorandum of Understanding (MOU) signed at the APEC Summit in Peru last November, and a Memorandum of Agreement (MOA) signed at SITDEF (International Defense and Disaster Response Technology Exhibition) in April 2025. The agreement clarifies the terms of joint development and construction for the Peruvian Navy’s next-generation submarines.
Under the LOI, HD HHI and SIMA will begin detailed discussions on joint submarine development, technology transfer, and broader industrial cooperation. The process will then progress toward finalizing the design and construction contract and starting full-scale production.
The two companies aim to finalize a joint development agreement by the end of 2025. HD Hyundai plans to work closely with the Peruvian Navy and SIMA’s core technical teams at its Ulsan shipyard to complete the basic and detailed design of a submarine tailored to Peru’s operational requirements. Full-scale construction is expected to follow, supported by DAPA, the Ministry of Foreign Affairs, and the Ministry of National Defense.
HD HHI and SIMA have previously collaborated on four vessels, including a multi-purpose frigate, an offshore patrol vessel (OPV), and a landing support ship (BALOG). The partnership has also focused on technology transfer and workforce development in Peru.
“This LOI represents the first full-scale submarine joint development project for a South American navy,” said Luis Silva , President of SIMA Shipyard.
“The partnership will foster self-reliance in shipbuilding and defense technologies throughout Peru and the region, while providing HD Hyundai Heavy Industries with a platform to expand its global defense presence.”
HDHI’s President of Naval Ships and Medium-Sized Vessels Division, Joo Won-ho , added: “Through previous joint projects with Peru, industrial cooperation and the development of Peru’s shipbuilding sector have advanced significantly. We expect this submarine project to further strengthen the Peruvian Navy’s capabilities, leveraging HDHI’s extensive experience in submarine design and construction.”