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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 announcement followed the successful completion of the basic design phase. The event, held on July 14, 2026, at the Peruvian Navy Headquarters, showcased progress in the joint development program. The HDS-MGP is a 65-meter, 1,500-ton submarine tailored to Latin American maritime conditions, incorporating Peruvian Navy operational experience. HD Hyundai aims to enable SIMA to independently construct and maintain the submarines, fostering a self-sustaining industrial ecosystem. The partnership began with a joint production contract in April 2024 for four naval vessels, followed by a submarine MoU in November 2024 and a formal joint development agreement in December 2025. The BALOG amphibious vessel is scheduled for launch this year, while the submarine program moves toward a joint construction contract.
Source report
By: Naval News Staff
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 following 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 important opportunity to present the achievements of the joint submarine development program, explain the platform's technical strengths, and share a common vision with senior representatives of the Peruvian Navy.
Both HD Hyundai Heavy Industries, 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: to enable SIMA to construct and maintain the HDS-MGP submarine independently and, 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, and 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, and 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 with Peru's SIMA Shipyard for joint submarine development.
- December 2025: The "Joint Development Agreement for a Next-Generation Submarine" was formally signed.
Since launching their strategic partnership in 2024, the two organizations have achieved significant results within a remarkably short period. The BALOG amphibious vessel is scheduled to be launched this year, while 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
Source
Naval NewsNeutral / independent
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HD Hyundai and SIMA Unveil HDS-MGP Submarine Vision for Peruvian Navy