SONGDO ISLAND, South Korea, Oct. 12 (UPI) -- South Korea's POSCO Daewoo is to provide the Brazilian navy with two ships and modernize the Arsenal de Marinha do Rio de Janeiro shipyard under a new $1 billion deal.
The arrangement signed in South Korea by company Chief Executive Officer Kim Young-sang, AMRJ shipyard chief Mario Ferreira and Brazilian Ambassador to South Korea Luiz Fernando Serra.
The vessels to be built are a landing platform dock and a multirole corvette, both of which will be constructed in partnership with domestic shipyards.
"The latest deal is the outcome of our efforts made through successful technology transfer and business experience in the LPD construction business," said Kim. "We plan to expand our presence in Central and South American countries and also diversify our business portfolio into infrastructure, grain and food businesses."
POSCO Daewoo operates a branch office in Brazil's capital of Sao Paulo since 1980, which has been dedicated to clinching deals with surrounding nations.
In 2013, the company signed a deal to build an LPD at Peru's military shipyard. That ship is scheduled to be completed by the end of this year.