LIMA, Peru — South Korea's HD Hyundai Heavy Industries (HD HHI) and Peru's state-owned SIMA Shipyard have completed the basic design of the HDS-MGP next-generation submarine, marking an important milestone in their joint effort to strengthen Peru's submarine construction and maintenance capabilities and support the development of a regional submarine industry in Latin America.
The milestone was presented to senior officials of the Peruvian Navy during the "Presentation of the Vision for the Construction of Peru's Next-Generation Submarine", held on July 14, 2026, at the Peruvian Navy Headquarters. Representatives from HD HHI, SIMA, and the Peruvian Navy reviewed the progress of the joint development program, the submarine's technical capabilities, and the long-term objectives of the partnership.
HDS-MGP Designed for Peru's Operational Requirements
The HDS-MGP (Hyundai Design Submarine – Marina de Guerra del Perú) is based on HD HHI's proprietary HDS-1500 design. The conventional submarine measures 65 meters in length and has a displacement of 1,500 tons.
According to HD HHI, the submarine has been customized to meet Peru's operational requirements and the maritime conditions along the Pacific coast. The design also considers underwater terrain that frequently exceeds 3,000 meters in depth, reflecting the country's operating environment.
Building Local Submarine Construction and Maintenance Capability
A key objective of the program is to enable SIMA Shipyard to independently build, maintain, and support the HDS-MGP submarines in Peru.
HD HHI said it is working closely with SIMA and local industrial partners to establish a self-sustaining submarine industrial ecosystem. The cooperation covers submarine construction, as well as maintenance, repair, and overhaul (MRO), while also focusing on technology transfer and workforce development.
According to the companies, the initiative is expected to support local employment, strengthen Peru's maritime industrial base, and contribute to the country's broader economic growth.
Peru's Experience Supports Regional Vision
Peru has operated submarines for decades and has provided submarine education and training to neighboring countries. HD HHI plans to build on this operational experience as part of the joint development program.
The companies said the long-term goal is to position Peru as a regional hub for submarine construction, maintenance, repair, and logistics support, while creating opportunities for future submarine exports within Latin America.
Partnership Timeline
The HDS-MGP program is part of a broader defense and shipbuilding partnership that has expanded steadily since 2024.
- April 2024: HD HHI and SIMA signed a 640.6 billion KRW (approximately $462.9 million) contract for the local construction of four naval vessels, including a 3,400-ton frigate, a 2,200-ton offshore patrol vessel, and two 1,500-ton amphibious landing ships. The agreement was described by the companies as the largest defense export contract in Latin America's history.
- November 2024: The companies signed a Memorandum of Understanding (MoU) to begin joint submarine development.
- April 2025: HD HHI and SIMA signed a Memorandum of Agreement (MoA) to expand cooperation on a customized 1,500-ton submarine. During the same period, HD HHI also received Approval in Principle (AIP) from classification society DNV for the HDS-1500 design.
- November 2025: Both companies signed a Letter of Intent (LoI) to advance detailed terms for the submarine's joint design and production.
- December 19, 2025: HD HHI and SIMA signed the formal Joint Development Agreement for a Next-Generation Submarine at SIMA's facilities in Lima.
Program Progress
The basic design phase began in January 2026 and was completed after approximately 11 months.
The companies said the successful completion of the design phase demonstrates close cooperation throughout the project and allows the program to move toward securing a formal contract for the joint construction of the HDS-MGP submarine.
Meanwhile, the BALOG amphibious vessel, which is being built under the April 2024 naval shipbuilding agreement, is scheduled to be launched later this year.
Source : navalnews
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