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FinanceHD Hyundai and SIMA unveil HDS-MGP next-gen submarine design for Peruvian Navy
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HD Hyundai Heavy Industries and Peru's SIMA Shipyard have presented the HDS-MGP (Hyundai Design Submarine – Marina de Guerra del Perú) next-generation submarine design, aiming to establish a regional submarine construction and MRO hub in Latin America. The presentation was held on July 14, 2026, at the Peruvian Navy Headquarters, showcasing progress since their strategic partnership began in 2024. The HDS-MGP is a 65-meter, 1500-ton displacement submarine tailored to Latin American maritime conditions, incorporating Peruvian Navy operational experience. The program has completed its basic design phase and is moving toward a joint construction contract. HD Hyundai aims to enable SIMA to independently construct and maintain the submarines, creating a self-sustaining industrial ecosystem. The partnership also includes a 2024 contract for local construction of four naval vessels worth 640.6 billion KRW, the largest defense export deal in Latin America's history. The BALOG amphibious vessel is scheduled for launch this year.
Source report
By: Naval News Staff
Scale model of the HDS-1500 during SITDEF 2015. The future submarine is set to feature a length of 65 meters and a displacement of 1,500 tons.
HD Hyundai Heavy Industries and Peru’s SIMA Shipyard have presented the HDS-MGP (Hyundai Design Submarine – Marina de Guerra del Perú) next-generation submarine design. The initiative aims to establish a regional submarine construction and MRO hub in Latin America, following the successful completion of the basic design phase.
On Tuesday, July 14, the “Presentation of the Vision for the Construction of Peru’s Next-Generation Submarine” was held at the Peruvian Navy Headquarters. The event provided an opportunity to present the achievements of the joint submarine development program, explain the platform’s technical strengths, and share the common vision with senior representatives of the Peruvian Navy.
Both HD Hyundai Heavy Industries and the Peruvian Navy and SIMA presented the progress achieved to date, demonstrating that the principle of joint development has been faithfully incorporated into every stage of the program and its implementation schedule.
Strategic Objectives
HD Hyundai Heavy Industries has a clear objective for Peru’s submarine program:
- Enable SIMA to construct and maintain the HDS-MGP submarine independently
- Together with local industrial partners, establish a self-sustaining submarine industrial ecosystem
Peru is one of Latin America’s most accomplished submarine-operating nations. Drawing on decades of accumulated experience, it has provided neighboring countries with submarine operations education and training. HD Hyundai Heavy Industries will work alongside Peru so that these capabilities can extend beyond submarine operations and lead to genuine competitiveness in submarine construction and exports.
Design and Regional Focus
Jointly developed by HD Hyundai Heavy Industries and SIMA, the HDS-MGP is a next-generation submarine that combines:
- Advanced performance
- Proven operational expertise
- A design tailored specifically to the maritime conditions of Latin America
The marine environment of Latin America has distinctive characteristics that set it apart from other regions of the world. These operating conditions directly affect submarine performance requirements and operational concepts. Accordingly, the extensive operational experience and specific requirements of the Peruvian Navy have been actively incorporated into the HDS-MGP design.
Building on these strengths, HD Hyundai Heavy Industries and SIMA are also exploring opportunities to introduce the HDS-MGP to other markets across Latin America.
Long-Term Vision
Over the long term, SIMA has the potential to develop not only into a submarine construction center but also into a regional hub for submarine maintenance, repair, overhaul, and integrated logistics support. This development would:
- Create local employment
- Promote the growth of associated industries
- Contribute to Peru’s broader economic and GDP growth
Program Milestones
- April 2024: HD Hyundai Heavy Industries signed a joint production contract with SIMA Shipyard for the local construction of four naval vessels, valued at 640.6 billion KRW — the largest defense export deal in Latin America’s history.
- November 2024: The Korean shipbuilder signed a Memorandum of Understanding (MoU) with Peru’s SIMA Shipyard for joint submarine development.
- December 2025: The “Joint Development Agreement for a Next-Generation Submarine” was formally signed.
- 2026: The BALOG amphibious vessel is scheduled to be launched this year.
- Current: The HDS-MGP submarine program has completed its basic design phase and is progressing toward the next stage: a contract for joint construction.
Tags: HD HHI, SIMA Peru, Submarine
For further coverage, check out our report on the future submarine for Peru during SITDEF 2025.
Source
Naval NewsNeutral / independent
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HD Hyundai and SIMA Unveil HDS-MGP Submarine Vision for Peruvian Navy