ID :
64561
Sun, 06/07/2009 - 09:38
Auther :

S. Korean company to bid for Indonesian submarine deal

JAKARTA, June 7 (Yonhap) -- A South Korean company said Sunday that it will submit a bid to win the right to construct two submarines for Indonesia that could be worth US$1.2 billion.

Daewoo International Corporation said that it will submit specifications to
supply two 1,400-ton diesel electric Type-209 submarines to Jakarta. The hulls of
these vessels could cost $350 million apiece with critical sonar and combat
management systems pushing the total price to $600 million.
The ships to be built are a modified version of the Chang Bogo class currently in
service in the South Korean Navy. Seoul operates nine such vessels that were
built in the country using designs provided by Germany's Howaldtswerke-Deutsche
Werft (HDW).
The company, which has been at the forefront of South Korea's arms exports, said
winning the bid could open a new chapter for the country.
"The two vessels are equivalent to the country selling 70,000 automobiles and
would be the first time South Korea has exported submarines," a Daewoo executive
in Jakarta said.
He stressed that while the bid may not be easy to secure, the South Korean ship
made by Daewoo Shipbuilding and Marine Engineering Co. does have a chance to
compete with established submarine manufacturers from Russia, Germany and France.
Russia maintains a sizable submarine fleet and has exported its Kilo class ships
to such countries as China and India. Germany's HWD, owned by ThyssenKrupp, has
an impressive record of exporting its Type-209 vessels to more than 10 countries.
Indonesia has two operational Type-209s in its fleet. France has been less
successful in exporting its subs but may try to outbid others in order to win
overseas buyers.
The Daewoo executive said Germany may offer $1 billion in loans to boost its
bids, with the South Korean company countering with a proposal to construct a
submarine rescue ship based on the 4,200-ton Cheonghaejin model currently in
service if Jakarta accepts its bid.
Other advantages include Daewoo's close links with Indonesia dating back to the
early 1990s, including past support in such areas as maintenance for Indonesian
submarines, construction of multipurpose logistics support vessels and basic
trainers for the country. It has also sold armored personnel carriers used by the
police and secured a deal to supply a heavy armored car to Indonesia last year.
(END)


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