Friday, February 1, 2013

China offers Type 054 to meet Thai frigate requirement

China has offered Thailand its Type 054-class Jiangkai frigate to meet a requirement to procure multipurpose frigates for the Royal Thai Navy (RTN), thus potentially putting Beijing and Washington head to head in a large-scale international procurement programme.
Sources have confirmed to IHS Jane's that preliminary discussions between Thailand and China have commenced over the potential deal, in which China has said it is prepared to sell to the RTN three Type 054-class vessels at a cost that will meet the programme's budget of USD1 billion.
While the RTN is said to favour a purchase of a US, European, or South Korean platform, the potential deal to procure from China is being led by the government, which views the Type 054-class as a cost-effective alternative to Western vessels. Additionally, logistical arrangements would favour China given that Thailand already operates a number of Chinese naval platforms.

Lockheed Martin of the US has already confirmed that it is considering offering its Littoral Combat Ship (LCS) as a solution.
A deal to procure the Type 054-class vessel would include technology transfer to enable maintenance, repair, and overhaul and to locally produce unspecified components under licence from Type 054-class designer and constructor Hudong-Zhonghua Shipbuilding.
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