South Korean investors reacted positively Monday to reports that
Hyundai Heavy Industries, the world's largest shipyard, is assured of a 337 million US dollar order to build two frigates for the Philippines.
Hyundai Heavy has formally received a notice of award from the Philippine government to build two new frigates, IH Jane's 360, the news outlet for defence and security information, reported, adding the notice indicates a contract price of $337 million.
Hyundai Heavy's stock gained 3.3 percent in mid-afternoon Monday to 140,500 won (125.8 US dollars).
The Philippine Department of National Defense first launched the two-ship frigate acquisition programme in October 2013 to meet the navy's long-range maritime surveillance, patrol, and interdiction capabilities, Jane's said.
Hyundai Heavy pitched its HDF-3000 multipurpose frigate design, which has been used as South Korea's Incheon-class guided-missile frigates, it said.
The HDF-3000 design features an overall length of 114.3 meters, and the platform has a standard displacement of about 3,000 tonnes and can carry a 127 mm gun, two anti-surface missile launchers, two triple torpedo tubes, and associated fire control systems, Jane's said.
This year, Hyundai Heavy and two other leading local shipyards have been put under creditor-led restructuring. Last week Hyundai Heavy closed one of its 11 dry docks for the firs time due to a dwindling backlog of orders.
Aju News Lim Chang-won = firstname.lastname@example.org
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