The Minute of Meeting (MOM) was signed at POSCO Daewoo’s headquarters in Songdo Island, west of Seoul, on Sept. 29 with the company’s CEO, Kim Young-sang, AMRJ chief Mario Ferreira and Brazilian Ambassador to South Korea Luiz Fernando Serra.
Under the MOM, POSCO Daewoo will provide the Brazilian Navy with a patrol corvette and an LPD in partnership with domestic shipyards, and also provide ship design technology and shipbuilding materials to help AMRJ’s modernization.
The deal is considered to have suggested a new business model for Korea’s shipbuilding industry and behind this was POSCO Daewoo’s global business network and expertise in government-to-government business.
In 2003, POSCO Daewoo struck a deal with Indonesia’s state-run shipyard, PT PAL, to build two LPDs on condition they would be built with the company sharing its knowledge about shipbuilding, vessel design and personnel training.
In 2013, the company signed a deal to build an LPD at Peru’s military shipyard, Servicios Industriales de la Marina (SIMA). The LPD will be completed by the end of the year.
“The latest deal is the outcome of our efforts made through successful technology transfer and business experience in the LPD construction business,” said POSCO Daewoo CEO Kim Young-sang. “We plan to expand our presence in Central and South American countries and also diversify our business portfolio into infrastructure, grain and food businesses.”
AMRJ chief Mario Ferreira said he expected POSCO Daewoo will “play an important role in advancing the Brazilian Navy’s vessels and facilities, as well as executing its comprehensive modernization project.”POSCO Daewoo has run a branch office in Brazil’s capital of Sao Paulo since 1980, which has been dedicated to clinching deals with surrounding nations, including Colombia, Peru and Argentina.