The Royal Thai Navy will hold talks with China Shipbuilding & Offshore International Co (CSOC) on June 9 about a contractual dispute regarding the engine to be fitted in the S26T Yuan-class submarine being built for the navy.

According to a source, the vice president of CSOC will meet navy chief of staff Adm Tharoengsak Sirisawat after Germany’s MTU 396 refused to sell the engines to China as they are designated a military/defence item.

CSOC has asked the navy to alter the contract to allow the use of a Chinese-built alternative, such as the MWM 620, which it claims to be of the same standard, but the navy is standing by the terms of the original contract.

The submarine’s delivery is scheduled for 2024.

Negotiations were originally slated for May but were postponed twice due to the Covid-19 situation in China.

“The company is likely to offer revised terms. However, the debate as to whether to revise the deal or scrap it altogether is likely to rumble on for some time,” added the source.