STX unveils two patrol vessels for Peruvian Navy at christening ceremony

STX Corp., a South Korean general trading firm, said Monday it has unveiled two patrol vessels being built for the Peruvian Navy at a ship christening ceremony in the South American nation earlier this month. The ceremony for the launch of the patrol boats -- the B.A.P. Rio Huarmey and the B.A.P. Rio Nepena -- was held at the Peruvian national shipyard SIMA on Jan. 10. It was attended by Peruvian President Dina Boluarte and senior government and military officials. STX said the boats, built together with SIMA, were designed to bolster Peru's coastal defense. The identical vessels measure 56.4 meters in length and 8.5 meters in width, with a maximum speed of 23 knots. Construction of the vessels is expected to be completed by the second half of this year, after which they will be delivered to the Peruvian Navy for coastal patrol operations. STX has built a solid partnership with the Peruvian Navy through its prior involvement in the construction of patrol vessels. From 2013 to 2021, STX supported the building of six patrol vessels for the Peruvian Navy. In May 2023, the company signed a $36 million contract with the Peruvian government for the construction of the seventh and eighth vessels. (Yonhap)

Hyundai Rotem wins $60m defense contract in Peru

South Korea's sole tank maker Hyundai Rotem said Monday that it has delivered its K808 White Tiger wheeled armored personnel carriers to Peru in a $60 million deal, marking the entrance of Korea-made armored vehicles into the Latin American market. The contract was commissioned by the Peruvian Army Arsenal in May and facilitated by South Korea’s STX Corporation -- a global trading company specializing in defense procurement. Hyundai Rotem will supply 30 K808 vehicles through STX Corporation, which brokered the agreement. Notably, the deal accounts for approximately 9.17 percent of STX’s annual revenue. What is the K808? The K808 is an armored vehicle with eight wheels and all-wheel drive, designed to transport troops through tough mountainous terrain or active combat zones. Built with enhanced underbody protection, it is highly resistant to landmines and improvised explosive devices. The vehicle’s powerful all-wheel-drive system ensures it can handle harsh conditions with ease. First introduced in 2016, the K808 was developed alongside the K806, a smaller six-wheeled version, as part of Hyundai Rotem’s initiative to build modern, highly mobile vehicles for South Korea’s military. The K808 has since proven its reliability, making it a strong candidate for export. Expanding Korea’s defense footprint This deal highlights South Korea’s growing role in the global defense industry. Hyundai Rotem’s success follows its 2022 agreement to supply K2 Black Panther tanks to Poland. For Peru, the K808 boosts military mobility and safety. For Hyundai Rotem and STX Corporation, the contract is a breakthrough into Latin America and new, competitive markets as nations modernize their defense capabilities.

Arms agency chief discusses cooperation with Peru defense minister

The chief of South Korea's arms procurement agency has met Peru's defense minister and discussed ways to expand their arms industry cooperation on the ground, sea and air, the Defense Acquisition Program Administration said Monday. The meeting between DAPA Minister Seok Jong-gun and Peru's Defense Minister Walter Astudillo in Lima on Saturday came as President Yoon Suk Yeol visited Peru for an Asia-Pacific Economic Cooperation summit. In a separate summit held with his Peruvian counterpart, Dina Boluarte, on the sidelines of the APEC gathering, the leaders agreed to strengthen cooperation in the defense industry and the mineral sector, with Yoon and Boluarte hailing the defense partnership as a "milestone in advancing the comprehensive strategic relationship." During the ministerial meeting, Seok reaffirmed Seoul's willingness to support the implementation of arms deals for naval vessels and armored vehicles built by South Korean defense firms, as well as potential additional deals. In April, South Korean shipbuilder HD Hyundai Heavy Industries signed a US$460 million contract to build four warships for the Peruvian Navy jointly with a local shipyard, followed by a $60 million deal by South Korea's Hyundai Rotem and STX to supply 30 units of armored vehicles. Seok also briefed Astudillo on South Korea's homegrown KF-21 fighter jet and Surion utility helicopter, according to DAPA. (Yonhap)

STX Heavy rebranded as HD Hyundai Marine Engine

Korean marine engine maker STX Heavy Industries has officially been rebranded as HD Hyundai Marine Engine under the umbrella of HD Hyundai. At a shareholders' meeting held on Tuesday, all proposed agenda items were approved, including amendments to the articles of association, a name change and the election of new directors. President Kang Young, appointed as the first CEO, brings a wealth of experience from his tenure at HD Hyundai Heavy Industries, where he joined in 1992. He has held various key positions, including accounting officer, head of management support, head of business and head of finance. According to the company, his extensive background positions him as the ideal leader to ensure efficient investment and financial stability for HD Hyundai Marine Engine. The rebranding and launch of HD Hyundai Marine Engine comes with ambitious plans to advance engine technology and expand the company’s production portfolio. The global marine engine market, projected to grow to approximately 15 trillion won ($10.8 billion) by 2030, offers significant opportunities for the company to assert its leadership. A strategic focus will be on leveraging HD Hyundai Marine Engine's advanced crankshaft production technology and integrated turbocharger systems to localize key components and enhance cost competitiveness. These efforts are expected to create significant synergies with HD Hyundai Heavy Industries, a global leader in the marine engine sector. HD Hyundai has restructured its marine engine production into three specialized entities to better address the increasing demand and stringent environmental regulations. These entities include HD Hyundai Heavy Industries for large ship propulsion engines, HD Hyundai Marine Engine for small and medium ship propulsion engines, and HD Hyundai Engine for power generation engines. This reorganization aims to maximize production efficiency and responsiveness to market needs. The three companies will collaborate closely to enhance their competitiveness in eco-friendly engine design through shared technological innovations. For example, by pooling their research and development efforts, they can accelerate the creation of engines that meet stringent emission regulations. They will also leverage their combined overseas distribution networks to boost export sales. “Investing in eco-friendly engines is key to decarbonizing the shipping industry, and our innovative technology will keep us ahead in the global arena,” said an HD Hyundai official. HD Hyundai is set to finalize the acquisition of STX Heavy Industries on Wednesday. HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company in the shipbuilding sector, will acquire a 35.05 percent stake in STX Heavy Industries through a combination of old and new shares.

HD Korea Shipbuilding's merger with STX Heavy gets antitrust approval

HD Hyundai-Hanwha rivalry to heat up in lucrative marine engine market The Korea Fair Trade Commission has approved HD Korea Shipbuilding & Offshore Engineering's acquisition of STX Heavy Industries, subject to conditions that prevent supply refusal and price increases for marine engine parts for three years to ensure fair competition. The merger of HD Korea Shipbuilding & Offshore Engineering, the leader in the marine engine and components market, with STX Heavy Industries, the third-largest player in the same sector, is set to significantly enhance HD Korea Shipbuilding’s competitive edge against its primary rivals, Hanwha Ocean and Hanwha Engine. The commission's decision, announced Monday, aims to mitigate potential competition restrictions in the domestic marine engine market resulting from the merger. HD Korea Shipbuilding, an intermediate holding company of HD Hyundai, will acquire 35.05 percent of STX Heavy Industries. This acquisition includes STX Heavy Industries' subsidiary, KM Crank Shaft, which produces crucial marine engine parts like crankshafts. The commission investigated the merger's impact on various market segments, focusing on potential competition restrictions due to vertical and horizontal tie-ups between crankshafts, marine engines and ships. One significant concern regarding the merger was that the combined company might refuse to supply crankshafts to competitors like Hanwha Engine and STX Engine, jeopardizing their production. Historically, domestic engine manufacturers either produced their crankshafts or had exclusive arrangements with suppliers. Hanwha Engine, formerly HSD Engine, sourced crankshafts from Doosan Enerbility and KM Crank Shaft, but the merger threatens the stability of this supply chain. The merger raises concerns that KM Crank Shaft, now part of the HD Hyundai group, may refuse to supply crankshafts to Hanwha Engine or offer them at unfavorable prices or with delayed delivery times, disrupting Hanwha's engine production. This disruption would likely shift demand to HD Hyundai, further strengthening its market position. Compounding this issue, Hanwha's main supplier, Doosan Enerbility, is operating at full capacity due to increased orders for nuclear power plant components, limiting its ability to produce additional crankshafts. Additionally, Chinese-made crankshafts are not a viable alternative due to quality, transportation costs and delivery reliability. Hanwha recently expanded its presence in the shipbuilding industry by acquiring Daewoo Shipbuilding & Marine Engineering, now known as Hanwha Ocean, and Hanwha Engine. These acquisitions aimed to vertically integrate its marine engine manufacturing business, positioning Hanwha as a strong competitor to HD Hyundai in the shipbuilding and marine engine markets. However, the commission recognized that Hanwha's dependence on external suppliers for crankshafts, which it has not yet vertically integrated, could undermine fair competition in the market. To address these issues, the commission has imposed safeguards to ensure a stable crankshaft supply for competing engine manufacturers for three years. These measures include prohibiting supply refusal, ensuring minimum supply quantities, capping price increases and preventing delivery delays. The safeguard period may be extended based on future market conditions. The commission emphasized that these measures balance the merger's intent to enhance competitiveness in the global engine market, especially for eco-friendly engines, with the need to maintain fair competition in Korea's shipbuilding industry. "This decision is significant in ensuring fair competition in a key national industry," said an official from the commission. "We're fully on board with the KFTC's decision and are excited to harness the combined strengths of both companies. This merger is a great opportunity to drive innovation in the eco-friendly engine sector," said an official from HD Korea Shipbuilding & Marine Engineering.

Hyundai Rotem, STX sign $60m armored vehicle deal with Peru

Korean defense company Hyundai Rotem and trading firm STX signed a $60 million contract with Fabrica de Armas y Municiones del Ejercito SAC, the Peruvian state arms procurement agency, to export K-808 White Tiger wheeled armored vehicles. It is Korea's first export of armored vehicles to Latin America, according to Hyundai Rotem on Wednesday. Under the contract, Hyundai Rotem and STX will supply 30 units of K-808 vehicles to Peru by the end of 2024. Hyundai Rotem will be responsible for producing the eight-wheeled infantry transport vehicles, and STX will be in charge of delivering Hyundai Rotem-made armored vehicles to Peru. Hyundai Rotem said the company would strive to win more export orders for armored vehicles. The Peruvian government currently plans to secure a total of 120 armored vehicles, and Hyundai Rotem is the first company to provide armored vehicles to the country. Local reports noted Hyundai Rotem is expected to supply the Peruvian Army with other types of vehicles with different maneuvering systems, ranging from four and six-wheeled armored vehicles to light and heavy tactical vehicles. The Korean weapon systems maker also expressed hopes that the latest contract would work as a springboard into the wider Latin American defense market, where demand for armored vehicles is increasing. Hyundai Rotem’s latest deal is the second defense contract signed between a Korean company and the Peruvian military this year. In April, Korean shipbuilder HD Hyundai Heavy Industries signed a $463 million deal to build four warships for the Peruvian Navy. The contract was the largest naval ship order placed by a Latin American country with a Korean shipbuilder.

Hyundai Rotem to export armored vehicles to Peru

Korean defense firm Hyundai Rotem said Thursday that it has been chosen as the preferred bidder for a Peru military project for wheeled armored vehicles. The company will deliver 30 units of its K808 White Tiger wheeled armored vehicle to Peruvian military authorities in the first batch, valued at approximately $60 million. This deal was facilitated by Korean trading company STX. This deal signifies not only the first export of Hyundai Rotem’s wheeled armored vehicles, but also the first time for local companies to export combat armored vehicles to Central or South America. Since starting the development of wheeled armored vehicles in 2003, Hyundai Rotem has continuously strengthened its capabilities through various prototypes. On home soil, Hyundai Rotem secured the bid for the South Korea military’s defense development project of wheeled armored vehicles in 2012. Subsequently, it succeeded in its development and achieved the military usage standard in 2016. Since then, Hyundai Rotem has delivered over 500 such vehicles to the Korean military. The company expects to deliver the fourth batch in the fourth quarter of this year. Hyundai Rotem offers two models of wheeled armored vehicles: the K806 with a 6x6 wheel drive system and the K808 with an 8x8 wheel drive system. The K808, scheduled for delivery to Peru, offers enhanced performance tailored for optimal mobility in demanding environments. It comes equipped with run-flat tires and a central tire inflation system to ensure continuous mobility. The eight-wheeled armored vehicle is also capable of traversing rivers thanks to its amphibious propulsion system. Throughout Hyundai Rotem's product line, technology from Hyundai Motor Co. is integrated into the wheeled armored vehicles, the company said. Hyundai Rotem aims to establish a foundation for business expansion in the Central and South American markets through this export, as there is growing demand for armored vehicles as part of counterterrorism and security maintenance activities in the region. “Following the export success of the K2 battle tank (to Poland), our wheeled armored vehicles have also achieved their first export milestone, showcasing the competitiveness of K-defense in the global market,” said an official from Hyundai Rotem. "We will continue to actively pursue research and development initiatives for advanced technologies in the field, alongside engaging in business activities aimed at bolstering our defense export capabilities."

STX to supply lithium with South American partners

South Korean trading company STX said Monday that it has signed a trilateral agreement with its partners based in Peru and Brazil, forming a secure supply chain that includes mining lithium and processing lithium concentrate. Lithium is a key mineral used for making rechargeable batteries. Under the partnership, STX announced a strategic equity investment in a lithium mine in Peru, which is estimated to have 18.1 million metric tons of lithium deposits. Signing an offtake agreement, it will also serve as a bridge between a Brazil-based lithium concentrate supplier with an annual production capacity of 272,155 metric tons and South Korea’s secondary battery companies. After thorough sampling testing, the company will undertake the lithium processing in Korea or another country. In addition, STX also discussed the launch of a lithium refinery with the nation’s battery makers. Taking charge of mining, refining, transporting and selling, STX will be able to secure competitiveness in the overall lithium supply chain, the trading firm said. While uncertainties have arisen as South American countries such as Mexico and Chile are nationalizing their lithium deposits and amid the US' implement of the Inflation Reduction Act, STX will provide a stable supply chain of the main minerals of battery production including nickel, cobalt, graphite and lithium for Korean companies. This is a part of STX’s plan to give momentum to Trollygo, its business-to-business online trading platform of raw materials and industrial goods, set to be launched by the end of November. Last month, it also decided to make a paid-in capital increase to secure the necessary funds for the potential markets of Trollygo. Specializing in secondary battery raw materials, STX will strive to lead the new paradigm of the trading industry with its B2B platform, the company added.

HD Hyundai CEO promoted to vice chairman

South Korean shipbuilding and energy conglomerate HD Hyundai promoted Chung Ki-sun, the president and CEO of HD Hyundai, to vice chairman on Friday, as part of a leadership reshuffle that also included promotions for several other executives. Chung Ki-sun's tenure as president was marked by his role in steering the company through economic downturns over the last two years, especially in the shipbuilding sector. He was pivotal in developing ship sales and research initiatives, laying the groundwork for the company's future. In 2016, he launched the marine solutions business HD Hyundai Global Service, recognizing the burgeoning ship service market's potential. Chung has spearheaded initiatives across key business areas, including refineries, construction machinery and power equipment, with a keen focus on hydrogen and AI technologies. His introduction of the "Hydrogen Dream 2030" vision in 2021 and partnerships with US small modular reactor company TerraPower and data analytics firm Palantir in 2022 have highlighted HD Hyundai's commitment to expanding into new technological fields. Internationally, his contributions extend to establishing the International Maritime Industries shipyard, a joint venture with Saudi Arabia's Aramco, in 2015 and fostering cooperation with Saudi Crown Prince Muhammad bin Salman for future projects. The reshuffle also includes promotions of other executives. HD Hyundai Infracore CEO Oh Seung-hyun has been promoted to president and CEO. HD Hyundai Heavy Industries Vice President Kang Young has been promoted to the role of president. Kang will lead a task force for the acquisition of STX Heavy Industries. Vice Presidents Kim Sung-joon, Kim Wan-soo and Ko Young-kyu of HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Robotics and Hyundai Chemical, respectively, have each been promoted to the role of president and CEO. HD Hyundai Heavy Industries President Roh Jin-yul will join Kang Young as co-CEO, focusing on safety management and shared growth.

STX, Triple-A team up for crypto payment services on Trollygo

South Korean trading company STX said Tuesday that it had signed a payments partnership agreement with Triple-A to provide crypto payment services on Trollygo, its business-to-business online trading platform set to be launched in November. The signing ceremony was attended by STX CEO Park Sang-jun and Triple-A CEO Eric Barbier at the trading company’s office in central Seoul, Monday. Based in Singapore, Triple-A is Asia’s largest crypto payment gateway and obtained a license from the Financial Crimes Enforcement Network, the Monetary Authority of Singapore, and the French Prudential Supervision and Resolution Authority. It was also selected as a PG company of the crypto exchange giant Binance. Under the agreement, Triple-A accepts payments in crypto from Trollygo’s users and has payments settled in fiat -- US dollars -- in the bank account the very next day. While reducing the volatility risk of crypto, the payments are made faster and cheaper, the company said. Through the online PG services, STX is expected to flexibly respond to e-commerce environments. Ahead of its launch, Trollygo is the trading industry’s first B2B platform that shifted offline-based trading of raw materials and industrial goods into an online space. “Through partnerships with the crypto PG expert Triple-A, we will successfully introduce the digital payments methods into the B2B industry, setting a new standard,” said STX officials.