Thailand's New Frigate Deal
Thailand selects Hanwha Ocean to build a next-generation frigate in a $505 million deal.
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Prime Minister Anutin Charnvirakul signed the evaluation report on September 4, and the deputy defense minister granted final approval on September 7, according to a Thai Navy spokesman.
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Hanwha Ocean’s predecessor secured the Thai frigate contract in 2013, before completing delivery of the vessel in 2018.
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The Navy is scheduled to hold a September 18 briefing explaining the evaluation criteria, the reasons for the selection and the expected benefits of the proposal for Thailand.
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Thai Navy spokesman Parach said the procurement should deliver benefits beyond the vessel itself, including stronger Thai skills, domestic industry and national self-reliance, stressing that the goal was not simply for “the Navy [to get] a ship” but for “the country [to] benefit alongside it.”
South Korea's Hanwha Ocean has won a 16.73 billion baht ($505 million) contract to build a next-generation frigate for the Royal Thai Navy, according to Muslim Network. The selection follows competition from shipbuilders in South Korea, Singapore, Spain and Turkey. Thailand plans to modernize its fleet from four operational frigates toward a target of eight vessels.
Prime Minister Anutin Charnvirakul signed the evaluation report on September 4, and the deputy defense minister granted final approval on September 7, Korea JoongAng Daily reported. The Navy will hold a September 18 briefing to explain the evaluation criteria and selection reasons. The decision remains subject to an appeals period.
Upgraded Frigate Design Based on 2018 Delivery
The proposed OCEAN-40F is an upgraded export model of a vessel Hanwha's predecessor delivered to Thailand in 2018, according to BigGo Finance. The 4,000-ton frigate will include related systems, equipment and spare parts. Hanwha Ocean secured the original Thai frigate contract in 2013, completing delivery five years later.
Program Could Expand to 4 Trillion Won With Follow-on Orders
The overall program could eventually reach 4 trillion won (roughly $3 billion) if follow-on orders are awarded, BigGo Finance stated. This initial contract of 683.3 billion won represents just the first phase. Thailand's military modernization goals drive demand for additional vessels to reach its fleet expansion target.
Thailand Prioritized Technology Transfer and Domestic Industry
Thailand weighed operational capability, lifetime value, technology transfer and workforce development in selecting Hanwha, Market Screener reported. The Navy spokesman stressed that benefits must extend beyond the ship itself. The goal was for "the country to benefit alongside it," including stronger Thai skills, a domestic defense industry and national self-reliance.
Hanwha Strengthens Position in Southeast Asian Naval Market
The frigate contract enhances Hanwha Ocean's position in the growing Southeast Asian naval market, according to Market Screener. The selection comes eight years after Hanwha's predecessor won the original Thai frigate order. South Korean shipbuilders are increasingly competing for regional defense contracts as Southeast Asian navies modernize their fleets.
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