Press Releases | HD Hyundai

HD Hyundai Marine Engine Officially Launched to Lead Global Eco-Friendly Ship Engine Market

2024.07.31

▶Newly named HD Hyundai Marine Engine with Kang Young appointed as CEO
▶Aiming to maximize production efficiency and profitability through advanced engine technology and strengthened ship engine portfolio
▶“Eco-friendly engine technology is the driving force behind decarbonization, which is poised to lead the global market”

Seoul, South Korea – July 31, 2024 - HD Hyundai has officially launched its new ship engine-specialized company, HD Hyundai Marine Engine.

On July 30, STX Heavy Industries held an extraordinary general meeting of shareholders, during which all proposed agenda items for the revision of the articles of association, including the company’s name change and the appointment of new directors, were approved. As a result, STX Heavy Industries will now embark on a fresh journey under the new name, HD Hyundai Marine Engine.

Kang Young has been appointed as the inaugural CEO. Kang, who joined HD Hyundai Heavy Industries in 1992, has held various key positions including Executive Director of Accounting in the Management Support Division, Head of the Management Division, and Head of the Finance Division. He is highly regarded as the ideal candidate to lead HD Hyundai Marine Engine in making efficient investments and ensuring financial stability.

Through the launch of HD Hyundai Marine Engine, HD Hyundai aims to advance its engine technology and strengthen its production portfolio, positioning itself to lead the global ship engine market which is expected to grow to approximately KRW 15 trillion (USD 11.3 billion) by 2030.

To achieve this, HD Hyundai Marine Engine plans to leverage its existing crankshaft* production technology and unified turbocharger** production system to localize key components and secure cost competitiveness. This strategy is expected to create significant synergy with HD Hyundai Heavy Industries, the global leader in the ship engine market.

Efforts will also be made to maximize the efficiency of ship engine production. HD Hyundai is restructuring its ship engine production portfolio into a three-company system; HD Hyundai Heavy Industries, which will produce engines for large vessels; HD Hyundai Marine Engine, which will produce engines for medium and small-sized vessels; HD Hyundai Engine, which will produce power generation engines. This reorganization aims to respond more efficiently to the increased demand for engines driven by stricter environmental regulations.

Moreover, these three companies will share technology to strengthen the competitiveness of eco-friendly engine designs and collaborate on expanding export channels by utilizing shared overseas distribution networks.

“Eco-friendly engine technology is the driving force behind decarbonization of the shipbuilding industry,” said an official of HD Hyundai. “We will continue to strengthen our position as a leading company in the global ship engine market, backed by our overwhelming technological prowess.”

Meanwhile, on July 31, HD Hyundai will complete all acquisition procedures by securing a 35.05% stake in STX Heavy Industries through a combination of stock purchases and a capital increase by HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company of HD Hyundai's shipbuilding division.

[Glossary]
* Crankshaft : A device that converts reciprocating motion into rotational motion
** Turbocharger : An air compressor that increases the pressure or density of the air supplied to an internal combustion engine, providing more oxygen during each intake cycle, thereby boosting engine output

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