Daewoo Shipbuilding & Marine Engineering Co inked a memorandum of understanding with Peru for construction of naval vessels for the country’s navy. The MoU includes construction of the new vessels and maintenance and upgrades of Navy’s submarines.

Daewoo Shipbuilding Chief Executive Ko Jae-ho said that the initial pact gives DSME exclusive rights to build submarines and multi-role support ships if the company clinches a final deal with the Peruvian government.

Early this year DSME received a KRW800 billion ($704 million) contract to build MARS, tankers for the British Navy.