U.S. sends RFI on combat ships and refueling vessels to K-shipbuilding… HD Hyundai, Hanwha and Samsung respond
The U.S. Department of Defense and Navy sent 7month 8day an information request (RFI) to South Korean shipbuilders asking about their capabilities to build and design combat ships and medium-sized refueling vessels. HD Hyundai, Hanwha and Samsung are reportedly each said to have responded, and the industry views South Korea–U.S. shipbuilding cooperation as having entered the working stage.
The U.S. Department of Defense and Navy sent 7month 8day an information request (RFI) to South Korean shipbuilders asking about their capabilities to build combat ships and medium-sized refueling vessels. From an investor perspective, the possibility of actual commercialization and the contract size are the key variables.
The RFI is known to include requests to verify construction and design capabilities. Specifically, it included items asking about capabilities related to combat ships and military support vessels (refueling vessels).
This RFI was issued alongside assessments that discussions on South Korea–U.S. shipbuilding cooperation, “MASGA,” had entered the working stage. The industry views the dispatch as a signal that the cooperation is becoming operational.
HD Hyundai, Hanwha, and Samsung affiliates are reported to have each responded to the RFI. The details and timing of whether the responses will be disclosed vary by company.
The RFI is a procedure under the U.S. Federal Acquisition Regulation (FAR) in which the government assesses the market’s technical capabilities before proceeding with a project. The dispatch of this RFI does not guarantee that a contract will be awarded.
Securities industry participants believe that the shipbuilding cooperation agreed upon by the two countries, worth 1,500billion dollars, could affect corporate valuations. Compatibility with the technologies and specifications being pursued by the United States was cited as an evaluation factor for each shipbuilder.