The Royal Thai Navy (RTN) has reinitiated its submarine procurement project through a revised agreement with Chinese defence contractors.
This development comes after the project faced delays due to disagreements over engine specifications.
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The updated contract, approved by the Thai cabinet on 5 August 2025, was signed at China Shipbuilding & Offshore International Co (CSOC) headquarters in Beijing, according to a post on RTN’s official Facebook page.
The signing ceremony included RTN commander-in-chief Adm Jirapol Wongwit representing the Thai government, and CSOC executive vice president Liu Song, representing China.
The revised agreement allows for the continuation of construction on the Yuan-class S26T submarines, with significant modifications to the original plan.
A major change involves substituting the German-made MTU396 diesel engine with a Chinese-manufactured CHD620 diesel engine, a report from the Bangkok Post said.
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By GlobalDataThis adjustment was necessary due to export restrictions imposed on the German engine in 2021.
Additionally, the contract extends the construction timeline by 1,217 days, pushing the delivery of the first submarine to late 2028.
The original procurement contract was established as a government-to-government deal in 2017 and valued at Bt13.5bn ($420m).
A GlobalData report projects that Thailand’s defence budget will grow at a compound annual growth rate (CAGR) of 5.8% from 2025 to 2029, reaching €5.9bn ($6.6bn) by the end of this period.
In April 2025, Spanish shipbuilding company Navantia was selected to enhance the RTN’s landing platform dock HTMS Chang (792).
The deal encompasses the supply and integration of a suite of Navantia’s advanced naval systems including Catiz combat management system.
