S. Korea close to clinching Indonesia submarine deal
2011-08-26 19:51
Defense Minister Kim Kwan-jin is to visit Indonesia early next month to seal a $1 billion deal that would result in South Korea’s first submarine exports.
If the deal is secured, Daewoo Shipbuilding and Marine, which is likely to be chosen as the preferred bidder by the Indonesian government, will sign a memorandum of understanding to sell three 1,400-ton submarines to the Southeast Asian country, ministry officials said.
Kim will accompany nine Korean defense contractors including Daewoo from Sept. 7-9 and hold talks with his Indonesian counterpart Purnomo Yusgiantoro on the country’s modernization project for their naval fleet.
The
$1.08 billion submarine acquisition program, regarded as a goldmine for defense contractors, brought about a fierce bidding war in which Daewoo reportedly beat German and French firms.
“The
Type 209 submarine, which the Indonesian government is willing to purchase, was first developed by the Germans in the
early 1970s and Korea bought the technology license to produce it in the beginning stage. France is well known for its welding techniques. The fact that Korea has beaten such strong rivals in the preferred bidder race is significant in that the country will join the ranks of submarine exporters. It also will brighten the prospect of selling more subs to other East Asian nations,” the JoongAng Ilbo newspaper quoted a defense industry official as saying.
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