Hyundai, ST Engineering bid for US$530 million Thai frigate order

[BANGKOK] South Korea’s Hyundai Heavy Industries and Singapore’s ST Engineering are among six companies vying for a US$530 million contract to supply a high-capability frigate to Thailand, which is seeking to strengthen its maritime defences.

The Royal Thai Navy also received proposals from South Korea’s Hanwha Ocean, Spain’s Navantia and Turkey’s Asfat and Tais Shipyards, according to spokesman Paraj Ratanajaipan. Five other companies that Thailand had previously invited did not submit their bids, he said.

The bids will be reviewed by a committee appointed by the navy over the next month, with special attention to the qualifications of the participants, technical proposals, economic and industrial offset proposals, and price points, Paraj said.

Thailand is seeking to strengthen its maritime defences by modernising an aging fleet, expanding its frigate numbers and ordering a Chinese-made submarine in an increasingly contested regional environment. The push comes alongside broader military upgrades, including its recent acquisition of Gripen fighter jets from Saab.

The Thai navy has said it aims to have eight frigates in its fleet by 2037, up from the current four. More frigates are essential for building the country’s naval capacity, especially in anti-surface and anti-submarine warfare, it has said.

The nation has laid out some conditions for bidders of the frigate contract. The winner will be required to build at least 20 per cent of the frigate in the country. BLOOMBERG