The Royal Thai Navy and China Shipbuilding & Offshore International Co (CSOC) have announced plans to meet on June 9 to discuss a contractual dispute concerning an engine to be installed in a S26T Yuan-class submarine under construction for Thailand.
The vice president of CSOC is reportedly expected to meet with Navy Chief of Staff Adm Tharoengsak Sirisawat to discuss the matter, prompted by Germany’s decision not to allow the sale of its MTU 396 submarine engines to be installed in Chinese-made submarines.
The Chinese company has requested that the navy modify the contract to permit the use of a Chinese-made alternative, such as the MWM 620, which it claims is of the same quality. However, the Royal Thai Navy is standing by the original terms of the contract.
Originally scheduled for May, negotiations were twice postponed due to the outbreak situation in China.
Observers say CSOC could offer revised terms to the Navy in order to finalize the contract. They noted, however, that the agreement could also be terminated if the issue is not resolved in a timely manner.
The delivery of the submarine is scheduled for 2024. (NNT)
 |
 |
 |
