HD Hyundai Heavy Industries Invests 1 Trillion KRW in Engines and SMRs... Targets AI Power Demand

Establishing a 3GW Power Generation Engine Production Base in Ulsan
Strengthening Core SMR Equipment Manufacturing Capabilities

HD Hyundai Heavy Industries is making a large-scale investment of more than 1 trillion KRW in onshore power generation engines and small modular reactors (SMRs) to address the increase in electricity demand driven by the proliferation of artificial intelligence (AI) data centers.

HD Hyundai Heavy Industries HiMSEN Gas Engine Model H54GV for Land-based Power Generation. HD Hyundai Heavy Industries

HD Hyundai Heavy Industries announced on September 10 that it will invest a total of 1.072 trillion KRW to establish a new production base for power generation engines and construct a dedicated factory for SMR manufacturing.

The company plans to invest 833.6 billion KRW to build a new HiMSEN engine production base with a 3GW capacity in Onsan-eup, Ulju-gun, Ulsan.

The new production base will be developed on a 215,000-square-meter (65,000-pyeong) site, consisting of engine assembly and commissioning plants, a crankshaft processing plant, and an engine block casting plant. Construction is scheduled to begin in the first quarter of next year, with full-scale operations starting after completion in May 2028.

Through this expansion, HD Hyundai expects to secure an annual onshore power generation engine production capacity of 4GW. In addition, by establishing multiple production hubs for HiMSEN engines, the company anticipates more efficient production management.

HD Hyundai Heavy Industries is also investing 238.6 billion KRW in the construction of a dedicated SMR key equipment manufacturing plant, widely recognized as a next-generation energy source. This dedicated SMR manufacturing plant will be built on land within the company's Ulsan shipyard, with completion targeted for the first half of 2029.

SMRs are a next-generation nuclear power technology that reduces output and modularizes key facilities compared to conventional large-scale reactors, enabling both stable electricity supply and carbon reduction.

A representative from HD Hyundai Heavy Industries stated, "This investment is aimed at securing core competitiveness in power generation engines and SMRs, both of which are gaining attention as new power sources in the era of AI," adding, "We plan to preemptively respond to surging power demand and lead the global AI infrastructure market."

In April and August of this year, HD Hyundai Heavy Industries signed power equipment supply contracts worth 627.1 billion KRW and 956 billion KRW with U.S.-based Aperion Energy Group and Coban Energy Group, respectively.

This content was produced with the assistance of AI translation services.