[Exclusive] Thailand Navy Chooses Hanwha Ocean for $510 Million Frigate, Total Contract May Reach $3 Billion with Follow-up Orders

One 4,000-Ton Next-Generation Frigate
Total Value Could Reach Up to 4 Trillion Won with Future Orders

Thailand has selected Hanwha Ocean as the contractor for its next-generation frigate project. The Royal Thai Navy is proceeding with a project to acquire one 4,000-ton-class next-generation frigate. While the contract for a single vessel is valued at approximately 16.7 billion baht (about 680 billion won), the total value could reach up to 4 trillion won if follow-up orders are included.

On September 8, the Royal Thai Navy announced in a public notice that it had chosen Hanwha Ocean’s 4,000-ton-class export model frigate “OCEAN-40F” as its next-generation frigate. Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering, previously delivered the 3,700-ton-class Phram Phumiphon Adunyadet-class destroyer (HTMS Bhumibol Adulyadej) to the Royal Thai Navy in 2018. The OCEAN-40F is an upgraded version of the Bhumibol Adulyadej destroyer.

This project is significant beyond just winning an order for a single frigate, as Thailand is pursuing a modernization of its naval power and may place additional orders in the future. The bidding competition featured Korean companies such as Hanwha Ocean and HD Hyundai Heavy Industries, along with global shipbuilders from Singapore, Spain, and Türkiye. Hanwha Ocean and HD Hyundai Heavy Industries each highlighted their competitive edge through past delivery experience and localization strategies, respectively. HD Hyundai Heavy Industries positioned “localization” as its key pitch, proposing a local production rate of about 40%, but ultimately did not win the export contract.

At one point, Hanwha Ocean was seen as leading the competition based on its operational experience with existing vessels and cooperative relationship with the Royal Thai Navy, though concerns arose over an engine failure on the Bhumibol Adulyadej destroyer. However, the Royal Thai Navy clarified that the issue was not related to Hanwha Ocean’s ship design or construction, putting concerns to rest.

An industry official commented, "Securing the Thai frigate order will serve as an opportunity to enhance the competitiveness and credibility of Korean naval vessels in the Southeast Asian market. It could also have a positive impact on expanding exports to neighboring countries in the future."

This content was produced with the assistance of AI translation services.