Peru Bets on National Industry to Modernize Armed Forces, Create 12,000 Jobs

Peru’s government is changing how it builds its military. For decades, Peru mainly bought military equipment from abroad, depending on foreign suppliers.

Now, President Dina Boluarte’s administration is investing billions of dollars to make ships, weapons, and aircraft at home. Official figures from the Ministry of Defense confirm over $3.4 billion allocated for defense modernization in 2025, the largest amount in decades.

The goal is clear: boost security, grow local industries, and create more than 12,000 jobs by 2040. Instead of shopping overseas, the armed forces are ordering much of what they need from state-owned companies and local factories.

Peru’s navy shipbuilder, SIMA, is partnering with South Korea’s HD Hyundai Heavy Industries to build modern frigates and patrol vessels in Peru, not overseas. Four new ships are already under construction.

This not only improves Peru’s navy, but also teaches new skills to hundreds of Peruvian workers. For the army, FAME—the country’s longstanding weapons factory—now makes thousands of rifles locally with international partners.

Peru is also assembling armored vehicles in-country, bringing high-tech expertise and reducing the need for imports. In the air, the Peruvian Air Force works with SEMAN to manufacture parts for planes at home and for export, making Peruvian aerospace workers more competitive.

Peru’s Defense Push Focuses on Jobs, Skills, and Self-Sufficiency

Officials say this move is about more than military strength. By keeping the work in Peru, the government aims to create lasting technical jobs, teach modern skills, and support many local companies, from steel-makers to electronics suppliers.

New defense policies and proposed laws seek to make these changes long-term and protect Peru’s control over its own security needs. The story behind the numbers shows a country wanting more independence.

Instead of relying on foreign hands for crucial equipment, Peru is betting on its own talent and factories to supply the military, secure its future, and strengthen its economy.

For Peru, this shift is less about weapons and more about investing in national potential and resilience — with jobs, skills, and self-sufficiency at its core.

Peru’s defense program stands as one of the largest industrial pushes in South America today, signaling lasting change for the way the country approaches both security and economic growth.