Last week, the Thai Navy made public its plans to resume the process of purchasing S26T attack submarines (based on the Type 039A Yuan class) from China after overcoming difficulties regarding the supply of engines for them, which led to the suspension of the contract in 2023. The decision was made shortly after a visit to the country by members of the naval industry from the Asian Giant and the People’s Liberation Army Navy (PLAN).
In this regard, it is known that the Chinese delegation arrived in Thailand with a proposal to replace the German MTU-produced engines, which were supposed to power the S26T submarines, with Chinese-made CHD620 engines that had previously been rejected. The context of the announcement suggests that the change is not due to the superior qualities of the Chinese engine, but rather an attempt by Bangkok to maintain and strengthen its bilateral ties with Beijing.
At the same time, the Thai Navy is poised to increase the number of Yuan class S26T submarines (which is configured as the export version of the Type 039A) requested, with an additional order for two units. It is worth noting at this point that the original purchasing process began in 2017, with a budget of around $403 million, but was put on hold due to difficulties in obtaining German-made MTU-396 diesel engines by the Chinese government amid “political limitations” cited by the German government.
Faced with this suspension, it is known that the Thai Navy had sought to incorporate an antisubmarine frigate or an ocean patrol vessel to temporarily address the deficiencies in this regard until the problem was resolved. The planned acquisition in this line would cost around $47 million, but ultimately did not proceed, a decision by the Thai Ministry of Defense that has sparked several criticisms from local media and political circles.
Finally, it should be clarified that the decision made would put an end to a potential legal dispute between two important trading partners in the Asian continent, as Thailand claimed compensation from China amounting to around $250 million for failing to supply the agreed engine. Chinese commercial leverage not only secured the acceptance of the CHD620 system but also included in the negotiations the delivery of a submarine training simulator for the training of Thai personnel in exchange for dropping the monetary claim.
*Images used for illustrative purposes
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