Hanwha expands hiring from shipbuilding equipment partners, raising industry concerns over labor shortages [fn Market Watch]

[Financial News] Concerns are growing in the shipbuilding equipment industry over a labor shift centered on large conglomerates.

A review of the investment banking sector and Financial News reporting on the 1st shows that Hanwha Engine has been steadily recruiting key personnel from STX Engine. Starting with one employee in July 2024, followed by six in May 2025, four in January 2026, and two more in June of the same year, a total of 13 workers have moved to Hanwha in design, service commissioning, procurement, and human resources.
As the talent drain accelerates, STX Engine is pursuing legal action, including an injunction to prohibit former employees from joining competitors.
The departures are also weighing on commissioning for projects set to begin in earnest in the second half of this year. Commissioning is an experience-intensive task that involves checking and adjusting engine performance under actual operating conditions after installation. With skilled workers leaving, STX Engine now faces the need to rebuild its on-site response system.
The design division is facing a similar challenge. About 90% of the parts for the MAN 35/44DF CD engine were localized and developed by STX Engine. Even after mass production begins, design specification management, adjustments to licensor standards, and design changes are still required, making the role of employees with development experience especially important.
An industry source noted, "Small know-how, such as specification adjustments, supplier management, and inspection standards, accumulates over time and ultimately becomes a source of competitiveness."

The intellectual property rights to the technical data and drawings for the MAN 35/44DF CD engine are held by the licensor, Everllence (formerly MAN Energy Solutions), allowing Hanwha Engine to manufacture the product under license. However, the industry views the production know-how and supply chain management expertise STX Engine secured through a joint investment with the licensor and about three years of demonstration testing as assets embedded in its workforce.
In fact, STX Engine is the only company in South Korea with a track record for the MAN 35/44DF CD engine. That is why there are concerns that the loss of key personnel could affect not only current bidding competition but also future business opportunities.
One industry official said, "Ship engines take a considerable amount of time from development to commercialization." The official added, "If Hanwha Engine can absorb the technology STX Engine built over three years through hiring, it can shorten its catch-up time. But STX Engine could lose the chance to move on to the next stage."
STX Engine is currently responding by deploying replacement staff, strengthening its organization, and creating a new 'PRO' position for DF engine field engineers. Still, it is not easy to find commissioning veterans for the engine in the market.

In the investment banking sector, there are concerns that if key personnel from technology-intensive mid-sized companies continue moving to large conglomerates, the foundation of the K-defense industry itself could weaken. Demand for skilled engine workers is also rising, driven by eco-friendly ships and power-generation equipment for data centers. One expert said, "With tighter International Maritime Organization (IMO) environmental regulations, dual-fuel engines are emerging as the next core technology." The expert added, "If the competitiveness of mid-sized companies weakens because of talent outflows, it could eventually lead to a market restructuring centered on large conglomerates."
In response, a Hanwha Engine official said, "This is a licensing arrangement with a technology company, so it is not correct to call it a technology leak." The official added that the company is responding to STX Engine's legal action.
[email protected] Kang Gu-gwi Reporter