SamKang Shipyard will build 3rd and 4th frigates of Ulsan Batch III type

SamKang M&T, a medium size South Korean shipbuilding company, selected as the preferred bidder for the 3rd and 4th frigate type FFX Batch III. This choice is likely to be protested by the "great South Korean shipping".

South Korean Administration The Defense Programs (DAPA) set an estimated price for frigates FFX Batch III/Ulsan at 805.9 billion Korean won (i.e. approximately 581.4 million USD).

SamKang's proposal amounts to only 705.1 billion won (US$508.4 million), or 87.455% of the price estimated by DAPA. This was the lowest offer of all competing companies and is within the 88% threshold, at which the creators received additional points during the evaluation process.

South Korea's major shipbuilding companies, Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries (HHI), expressed concerns about the tendering process, which strongly favours cost minimisation proposals.

In their view, the current evaluation criteria place too little emphasis on the costs of research and development, which led to a situation in which, if punished, for failing to meet the minimum labour requirement in certain categories, SamKang shipyard was not disqualified and the value of its offer supported by this bonus for not exceeding the 88% threshold outweighed other aspects.

This situation seems to be an intentional action by the authorities of the Republic of Korea to increase competition on the shipbuilding market. In recent years smaller companies have gained attractive orders to allow them to compete with the offer of giants.

For example, recently another small shipyard, HJ Shipbuilding & Construction (HJSC), built four patrol ships Patrol Killer Medium Rocket. It also took part in the process of building the frigate and the proposed cost of its offer on the 3rd and 4th ships. FFX Batch III was 734 billion won, or $529.2 million.

If the authorities decide to choose Samkang M&T, it will remain The yard is maintained This will be the second next to HHI builders of ships of this type. Six frigates FFX Batch III will be 129 metres long, 15 metres wide, displacement of 3,500 tons and maximum speed of 30 knots. Batch Batch III is the culmination of more than 15 years of research.

Programme Batch I ran from 2006 to 2016, and delivered six ships to the Navy of the Republic of Korea (ROKN). Programme Batch II, which began in 2011, is still being implemented, and the delivery of the last ship is scheduled for 2023, giving a total of eight units. Development Batch III began in 2016. Production will continue until 2027 and the first ship is to be delivered to the ROKN in 2024.

Written by TDW