TSAMTO, May 23rd. Peruvian state-owned company FAME S.A.C., South Korean Hyundai Rotem and commercial holding STX Corporation have signed a contract on strategic cooperation on the assembly and possible joint production of armored vehicles in Peru.
As reported by Infodefensa.com The signing of the assembly and co-production agreement took place on May 22 at the headquarters of the Peruvian Army in Lima. The contract was signed by Hyundai Rotem CEO Lee Yong Bae, STX Corporation CEO Sang Jun Park and FAME S.A.C. CEO Colonel Jorge Zapata Vargas.
The signed agreement is considered at the local level as an important milestone in strengthening the emerging defense industrial base. In this regard, it is no coincidence that the event was attended by Peruvian President Dina Boluarte, Defense Minister General Walter Astudillo, and other high-ranking civilian and military officials.
In accordance with the signed agreement, a BBM assembly line will be built at the FAME facilities with the further prospect of expanding the production of various types of military equipment. At the first stage, the company plans to assemble the first batch of 30 BBM. A comprehensive training program for FAME technical staff will also be implemented.
Recall that in early May, the South Korean company Hyundai Rotem was selected as the preferred bidder for the supply of 30 K808 White Tiger armored combat vehicles with an 8x8 wheel arrangement for the Peruvian Ground Forces.
The Peruvian state company for the production of weapons and ammunition under the control of the Ministry of Defense (Fabrica de Armas y Municiones del Ejercito – FAME S.A.C.) chose the consortium STX Corp. on May 2, 2024. / Hyundai Rotem as the preferred bidder to sign the contract.
It was reported that the agreement was worth about 82.8 billion. WON ($60.9 million) will be signed later this month after negotiations are completed. The subject of the proposed contract is the supply of 30 BBM K808 plus 120 units. as an option. The main contractor of the project is the STX Engine company.
The South Korean manufacturer expects the contract with Peru to pave the way for more such deals in a region where demand for armored vehicles is growing.
As already reported by CAMTO, in April 2023, the Ministry of Defense of Peru allocated an additional 238.8 million sols (about $ 60 million) to the budget of the country's Ground Forces for the purchase of 30 BBM with an 8x8 wheelbase.
The purchase, approved by Ministry Resolution No. 285-202, is carried out within the framework of the programs "Purchase of wheeled armored vehicles for the 3rd Armored Brigade of the Ground Forces" (code No. 2519572) and "Purchase of wheeled armored vehicles for the 6th Armored Brigade of the Ground Forces" (code No. 2519572).
In particular, 18 BBMs with an 8x8 wheel arrangement will be purchased for the 3rd Armored Brigade (Moquegua) and 12 units for the 6th Armored Brigade (Tacna). The programs will be funded from the National Defense Fund, which is replenished by royalties received from gas production at blocks 56 and 88 of the Kamisia field, which are expected to amount to about $2.7 billion by 2030.
Both projects are part of the Pacha Kuyuchix program, which provides for the purchase of a total of 120 armored vehicles with an 8x8 wheel arrangement.
Initially, it was planned to purchase 301 BBMs: 178 APCs and 123 IFVs to replace, among other things, the outdated Unimog UR-416, FIAT-Oto Melara 6614-G and 6616-H (4x4). However, due to budget cuts in recent years, the order has been reduced to 120 armored personnel carriers.
The purchase will be carried out in Peru within the framework of an interstate agreement in accordance with Directive DIR-DEC-005: "Procedure for the purchase of goods and services within the framework of the interstate model" dated March 3, 2023.
To implement the purchase, an evaluation commission (CETO) was formed, responsible for conducting a comparative evaluation of proposals in accordance with specified criteria and weighting factors, as well as preparing a market research report.
Among the options evaluated by the Armed Forces of Peru under the Pacha Kuyuchix program: BBM K808 of STX Corporation (Republic of Korea), LAV-3 of GDLS (USA), Rosomak of PGZ Group (Poland), Pandur-2 of Excalibur Group (Czech Republic), Lazar-3 from Yugoimport (Serbia), Terex of ST Engineering (Singapore), as well as PARS-3 of FNSS (Turkey) and Arma of Otokar (Turkey). In addition, technical and economic proposals from Hanwha (South Korea) with Tigon and NORINCO (China) with VN1 were evaluated.
