Hyundai Rotem closes in on $190 million armored vehicle deal with Peru

Hyundai Rotem Co., a South Korean defense equipment maker, is closing in on a contract to export advanced armored vehicles to Peru – a deal that would mark Korea’s first export of such weapons to Latin America.

The Hyundai Motor Co. subsidiary, which was named a supplier of wheeled armored vehicles to Peru last November, is currently working on technical documents to deliver modified vehicles that meet Peru’s requirements, according to Korea’s Ministry of Science and ICT.

The Peruvian government will soon make public its second request for proposal to announce its detailed technical specifications, the ministry said on Sunday.

Hyundai Rotem plans to export its K808 wheeled armored vehicles. The K808 is an eight-wheeled infantry transport vehicle that replaces the K511A1, also known as the Army Truck, used by the Korean Army.

The K808 is equipped with the D6HA engine used in large vehicles such as Hyundai Motor's dump trucks.

Export volumes and unit prices haven’t yet been fixed but based on Hyundai Rotem’s past defense contracts with the Korean government and the Korean Army, its deal with Peru could reach as many as 99 units worth 250 billion won ($190 million), industry sources said.

The deal, if finalized, would represent about 8% of the company’s 2022 sales revenue.

SUITABLE FOR RUGGED, CHALLENGING TERRAIN

Hyundai Rotem said its armored vehicles fit the rugged terrain and challenging paths of Peru, known as the Roof of South America.

The eight wheels are independently driven and are suitable for climbing hills and traversing rough terrain.

The K808 can traverse obstacles up to 40 cm high and navigate trenches up to 1.5 m deep, with a water jet that enables it to cross shallow rivers easily, company officials said.

Its tactical tires, equipped with an automatic air pressure adjustment device called CTIS, can maintain speeds of over 48 km per hour even when being hit by bullets, they said.

The K808’s standard armament includes the K-6 machine gun or the K-4 rapid-fire launcher.

The Peruvian government is known to have requested the installation of a remote-controlled weapon station (RCWS) developed by Hyundai Wia Corp.

An RCWS is a state-of-the-art technology that allows gunners to remotely operate external machine guns from a protected space for combat missions. Such a system is installed on a limited number of advanced armored vehicles, including the US Stryker.

The K808 is also capable of conducting chemical and biological warfare missions. Its external cameras can detect movement of up to 50 objects located some 2.5 km away.

COST-EFFECTIVE, CUTTING-EDGE TECH WITH SHORT DELIVERY TIME

“Our products are known for a short delivery time and cost-effectiveness as well as cutting-edge technology,” said a Hyundai Rotem official.

A successful contract with Peru will lead to additional orders from other Central and South American countries, industry watchers said.

Since the start of the Russia-Ukraine War, Korean defense companies have been in active weapons export negotiations.

Last December, Hyundai Rotem delivered 10 units of its K2 Black Panther, a next-generation battle tank, to Poland – part of its $3.4 billion deal to export 180 K2 tanks to the country, Korea’s first export of such battle tanks.

Hyundai Rotem last September also clinched a strategic partnership with Kongsberg Defence & Aerospace AS, Norway’s largest defense supplier, to jointly develop next-generation battle tanks.

Last year, Korea's defense industry posted a record $17 billion in exports, more than double its previous record of $7 billion in 2021.

Write to Jin-Won Kim at Jin1@hankyung.com

In-Soo Nam edited this article.