THAILAND selected South Korea’s Hanwha Ocean to supply the Royal Thai Navy (RTN) with 1 new frigate and associated equipment and support for US$508 million. This follows an RTN announcement on the selection with a detailed briefing on the matter to be held on Sept 18 after the legally prescribed appeal period ends. Hanwha leverages its advantage which capitalises on its prior experience delivering the HTMS Bhumibol Adulyadej to the RTN.
RTN spokesperson Rear Admiral Parach Rattanachaiphan said prime minister Anutin Charnvirakul signed an acknowledgement of the selection summary submitted by the defence ministry and the Navy on Sep 4. The permanent secretary for defence subsequently approved the selection outcome on September 7.
Commander-in-chief of the Royal Thai Fleet and chairman of the frigate procurement project management committee Admiral Korawit Chayarathi signed the announcement naming Hanwha Ocean as the selected company. The procurement encompasses one frigate, together with its systems and equipment, spare parts, tools, documentation, support services, testing and trials, fuel, lubricants, training, acceptance inspections, warranty coverage and related ceremonies. Hanwha Ocean’s offer is quoted on a customs-duty-exempt basis but includes value-added tax, other applicable taxes, transport and all other expenses.
The RTN statement read: “The RTN recognises that the frigate procurement project has attracted considerable public and societal interest, as it concerns national security, the protection of Thailand’s maritime interests, and the use of public funds. The RTN therefore places the utmost importance on ensuring that every stage of the
process is conducted correctly, cost-effectively, transparently, and in a manner that is subject to scrutiny. The selection evaluation was conducted with the best interests of the country as the primary consideration. Key factors included operational capabilities, suitability for the RTN’s missions, value for money throughout the vessels’ service life, and the long-term benefits to Thailand. These benefits include technology transfer, human resource development, knowledge and expertise enhancement, and the promotion of Thailand’s domestic defence industry. The fundamental principle underlying this project is therefore not simply that the RTN acquires a frigate, but that the country must benefit alongside the RTN. This national security investment must contribute to the development of Thai people, the growth of Thailand’s domestic industries, and the country’s capacity for greater self-reliance. The benefits generated from public expenditure should not end on the day the frigate is delivered, but should continue to create value for Thailand in the long term.”
Although the selection results are now approved, the formal announcement of the results will be held on Sept 18 after the statutory period for the submission of appeals to safeguard the rights of all participating bidders. “This frigate is being procured with Thai people’s money. Therefore, our objective is not merely to acquire the best frigate for the RTN, but to ensure that this investment also generates tangible benefits for the country. The RTN must gain a capable frigate, Thailand must gain enhanced capabilities, Thai people must gain knowledge and expertise, and Thai industries must have opportunities to grow
alongside the project”, the statement continued.
The RTN previously submitted its selection to the Defence Ministry’s permanent secretary for approval in July with hopes that the frigate is to be operational by 2031. The RTN is looking to procure one 4,000-tonne frigate per fiscal year with a budget of US$540 million with the likely possibility that Thailand would order more ships of the same class as the RTN aims to increase its frigate fleet from the current four to eight by 2037. However, funding for the second vessel was removed from the proposed 2027 fiscal budget, with the RTN set to resubmit the proposal in the 2028 budget if necessary amidst budgetary constraints faced by the government.
Thai media reports earlier stated that South Korea’s HD Hyundai Heavy Industries (HD HHI) and Hanwha Ocean were the last two bidders while Turkiye offered full transfers of technology via the state-owned ASFAT which was another bidder in the programme. The RTN sent requests for proposals to 11 shipyards, with six submitting proposals in April this year, including Hanwha, HD HHI, Spain’s Navantia, Singapore’s ST Engineering, and ASFAT and TAIS. At the previous Defense & Security exhibition in Bangkok last November, Hanwha Ocean and HD HHI displayed models of the OCEAN 40F and HDF4000 models pitched to the RTN.
The kingdom views offset trade as a major key to defence deals, requiring at least 20% of equipment that would be installed on the frigate to be produced locally in order to raise the share of local company participation. Technology transfer, workforce development, and partial reinvestment of the project budget are also vital to Thailand’s terms.–-shp/adj/dl (Pix:ADJ)
