HD Hyundai Heavy Industries to Invest KRW 833.6 Billion in Dedicated Plant for High-Power Power Generation Engines

en.Wedoany.com Reported - On September 10, the board of directors of HD Hyundai Heavy Industries approved an investment of KRW 833.6 billion for land acquisition, construction of a dedicated plant for high-power power generation engines, and installation of production equipment, in order to expand the company's production capacity for high-power engines for the engine power generation market. The investment period runs from September 10, 2026 to May 31, 2028, and the investment amount is equivalent to 8.92% of the company's consolidated net assets as of the end of 2025.

The scope of this investment includes not only the construction of new factory buildings but also related fixed assets such as land, buildings, and machinery and equipment. HD Hyundai Heavy Industries disclosed that the project investment period was determined based on design, permit approval, and plant construction plans, and that the actual investment amount and implementation timing may be adjusted according to the business environment and project progress; the specific plant site and the scale of additional annual production capacity have not yet been disclosed in the announcement.

HD Hyundai Heavy Industries' existing engine machinery production system includes a large engine assembly plant, a medium engine assembly plant, a foundry, a machining plant, and crankshaft production facilities. Among these, the annual production capacity of large engines is approximately 400 units, or 12 million horsepower, and the annual production capacity of medium engines is approximately 1,600 units, or 4 million horsepower. The company's independently developed HiMSEN four-stroke medium-speed engine can be used for ship propulsion, onshore power generation, and other applications, and its existing energy solutions also cover diesel engine power plants, modular power plants, emergency generators, and combined heat and power and hybrid power plants.

This dedicated plant investment follows prior order-side demand for capacity expansion. In August, HD Hyundai Heavy Industries signed a 1000 MW power generation equipment supply contract worth KRW 956 billion, with the equipment using 9.6 MW-class HiMSEN engines for power supply to a U.S. data center. Capacity expansion preparations disclosed during the same period show that the company can allocate approximately 0.7 GW/year of existing production capacity to the onshore power generation sector, and has already begun preparations for capacity expansion, including external procurement of large machine tools.

Under the investment arrangement confirmed on September 10, the new dedicated plant will form independent production facilities centered on high-power power generation engines, and land acquisition, design permitting, factory construction, and production equipment installation will proceed as planned by the end of May 2028.