Hyundai Rotem to invest $270M in Peru armored vehicle assembly plant

“Defence Industry as a State Policy” forum held in Lima that South Korea’s Hyundai Rotem will invest $270 million to establish an armored vehicle assembly site in the country. The initiative forms part of a 15-year modernization plan proposed by the company and is designed to support Peru’s long-term defense industrial capabilities. The announcement was made in the presence of Defense Minister César Díaz Peche, senior military officials, and representatives from Peru’s defense industry during the event organized by the National Society of Industries (SIN). The project will be carried out in partnership with the state-owned Fábrica de Armas y Municiones del Ejército (FAME S.A.C.) and will focus on the local assembly of the K2 Black Panther main battle tank and K808 White Tiger wheeled armored vehicle.

According to Peruvian defense officials, the facility will include around 30% local components and manufacturing services, promoting technology transfer and industrial participation by Peruvian suppliers. The site will be jointly operated by Hyundai Rotem and FAME S.A.C. and is expected to serve as a hub for production, assembly, and maintenance of armored vehicles for Peru and potentially other Latin American countries.

The investment follows a strategic defense agreement signed between Peru and Hyundai Rotem in November 2024 in Lima, which included the supply of K2 tanks and K808 vehicles. The plan aims to gradually replace the country’s aging fleet of Soviet-era T-55 and French-made AMX-13 tanks, many of which have been in service for over five decades.

The K2 Black Panther features a 120mm smoothbore gun, automatic loading system, and advanced protection suite, while the K808 armored vehicle is designed for high mobility across rugged and mountainous terrain, incorporating amphibious capabilities and adaptable tire pressure control systems.

General Jorge Arévalo Kalinowski, Commander General of the Army Logistics Command and board member of FAME, noted that the Hyundai Rotem partnership represents a “long-term strategic modernization plan” that will enable Peru to close the equipment gap with neighboring countries.

South Korea’s Defense Acquisition Program Administration (DAPA) and the South Korean Embassy in Lima have supported the cooperation framework, emphasizing it as a model for defense industrial partnerships based on technology sharing and local production.

This new development underlines Peru’s broader efforts to transform its defense sector into a pillar of national policy through industrial investment, legislative reforms, and international cooperation, aligning with the government’s forthcoming Defense Industry Promotion Law.