"From Ships to Data Centers"... HD Hyundai Marine Solution Sets Its Sights on Becoming the World's No. 1 K-AM Company [Interview]

 
[Financial News] HD Hyundai Marine Solution is rapidly expanding its business boundaries, moving from ship aftermarket (AM, repair and maintenance) into onshore data center power generation, and from Asia into Europe. The company aims to leverage its world-class shipbuilding and engine manufacturing capabilities in the service sector and grow into the world's No. 1 K-AM company.
Park Young-eon, executive vice president and head of HD Hyundai Marine Solution's AM Solutions division, told Financial News on the 11th, "Our goal is to become the most trusted partner for local customers and grow into the world's No. 1 AM business company." He added, "The cumulative number of ships generating AM Solutions sales has surpassed 10,000, securing a foundation for the AM business to grow steadily." Park has a distinctive background as a strategist who worked at global consulting firms such as Kearney and AlixPartners, and handled strategic planning at General Electric (GE) and STX Group.
Park said ships continue to require parts replacement, maintenance, technical services and retrofits for decades after delivery. As the installed base grows, he expects stable and recurring demand for parts and services. He described the 10,000-ship milestone as more than just a performance figure. In his view, it shows the company can expand into new AM areas it had not previously pursued, backed by a solid customer base.
In particular, he said the growing delivery of dual-fuel (DF) vessels is likely to lift sales per unit. "Compared with conventional single-fuel engines, dual-fuel engines require different designs and specifications even for the same parts, so they command a certain premium, and their maintenance systems and service scope are also broader," he explained. "Because these are new engines with high technical complexity, customer demand for long-term service agreements (LTSA) and their dependence on such contracts are also relatively high."
HD Hyundai Marine Solution has also set up a dedicated technical services organization. "Since the second half of last year, we have been fully implementing 'Health Check' inspections at major port hubs to assess the condition of ships and engines," he said. "In the first quarter alone this year, we carried out 165 inspections and secured 88 orders for parts and services." He added, "The next step is to continue expanding our global service hubs."
One area drawing attention is the company's entry into the U.S. data center power generation market. HD Hyundai Marine Solution recently signed a memorandum of understanding with U.S. Applied Electric Group (AEG) for the maintenance and repair of 33 HiMSEN Engines used to power a Texas data center. The agreement follows HD Hyundai Heavy Industries' April contract with AEG to supply a 684 MW power generation facility based on 20 MW-class HiMSEN Engines.
He said, "The structure is one in which HD Hyundai Heavy Industries supplies its proprietary HiMSEN Engine, and HD Hyundai Marine Solution takes charge of the subsequent maintenance and repair." He added, "The value chain that runs from supply by the shipbuilding unit to maintenance by Marine Solution applies equally to land-based power generation as it does to ship AM." As for when revenue recognition will begin in earnest, he said it would likely be around 2029, when the engines are delivered and the data center is completed. "That said, the company can begin securing key parts and spare parts in advance, even before commercial operation starts," he noted.
He said the company is targeting a differentiated market rather than competing head-on with established players such as Caterpillar Inc., Cummins and Rolls-Royce (mtu), which have mainly been strong in the emergency power market where high-speed engines are used for temporary operation during outages. The focus is on the baseload market, where power is supplied continuously and stably to data centers.
He added, "The HiMSEN Engine has high output and power generation efficiency, and its efficiency is close to that of small gas turbines, which makes it competitive." He pointed to Wärtsilä as the company he sees as a real rival, saying it has recently been winning more data center power engine orders. "We already carry out a significant amount of AM business through our U.S. subsidiary in Texas, where many data center projects are under way, so our local response capabilities are a strength," he emphasized.
He expressed confidence in meeting the 24-hour, uninterrupted, high-reliability requirements of data center power engines. "The HiMSEN Engine is already operating stably 24 hours a day in harsh marine environments and supplying power to ships," he said. "Uninterrupted power supply is achieved by designing the entire system so that a UPS or ESS responds to momentary power interruptions and backup engines start within a set time." He added, "If customers and EPC firms properly reflect 24-hour operating conditions during the design stage, we can deliver performance and stability equal to or better than existing competing engines."
The company has also completed a Singapore-Busan dual hub system to expand its global supply chain. "The Singapore hub is located near the Strait of Malacca, a strategic point where ship calls from around the world are concentrated, allowing us to support more vessels quickly and from a shorter distance," he said. "We apply the same pricing structure as the Busan hub, so there are no additional costs for customers." Through this network, HD Hyundai Marine Solution now supports more than 200 shipping companies and over 600 ports worldwide.
Oslo, Norway, was selected as the first base for its European push. "Northern Europe is home to shipowners who are at the forefront of LNG adoption and the transition to eco-friendly fleets, and it is a region where customers are increasingly ordering HD Hyundai's high-value-added, eco-friendly vessels," he said. "Since an HD Hyundai Heavy Industries branch is already operating there, we concluded that linking the group's value chain from shipbuilding to AM services would create significant synergy." HD Hyundai Marine Solution already operates its European headquarters in Rotterdam, Netherlands, along with offices in Athens, Greece, and Hamburg, Germany.
He viewed strong environmental regulations such as the European Union's FuelEU Maritime regulation and the EU Emissions Trading System (EU ETS) as an opportunity rather than a burden. Park said, "In many cases, actual eco-friendly retrofits require changes not only to the engine but also to the fuel supply system and the ship's electrical and control systems." He added, "HD Hyundai's comprehensive technical capabilities, built through the design and construction of cutting-edge ships, are a major advantage."
In fact, HD Hyundai Marine Solution has accumulated more than 1,000 ship retrofits in first-generation eco-friendly areas such as ballast water treatment systems (BWTS) and scrubbers. Based on that track record, it is expanding into dual-fuel conversions, floating storage and regasification units (FSRU) and floating storage units (FSU) retrofits, as well as LNG re-liquefaction systems. He added, "The turnkey model, in which one company takes responsibility for everything from design and procurement to construction, commissioning and warranty, is a key differentiator."
As the decisive advantage of its one-stop shop model covering parts supply, maintenance and eco-friendly retrofits, he pointed to access to the original technology behind the HiMSEN Engine. "The HiMSEN Engine, which holds about 35% to 40% of the global four-stroke marine engine market, is a major competitive strength," Park said. "As the only official maintenance provider for the HiMSEN Engine, HD Hyundai Marine Solution can deliver highly reliable maintenance services based on 100% genuine parts and original technology."
He also identified AI innovation as a key growth driver. "We are currently advancing our Palantir Technologies-based operating system, and we are strengthening our capabilities to establish ourselves as a global leader in remote monitoring, remote control and maintenance using smart ship technology," he said.
Park said, "We will respond steadily to the transition toward zero-carbon and low-carbon fuel engines based on the group's original technology and engine development capabilities." He added, "HD Hyundai Marine Solution's technology roadmap is closely linked to HD Hyundai's engine technology roadmap, and that is our biggest competitive advantage, one that rivals will find difficult to match."
[email protected] Kang Gu-gui Reporter