HD Hyundai Heavy Industries to Invest KRW 1 Trillion in Power-Generation Engines and SMRs to Meet AI-Driven Electricity Demand

[Financial News] HD Hyundai Heavy Industries announced on the 10th that it will invest KRW 1 trillion in producing land-based power-generation engines and small modular reactor (SMR) primary equipment. The move targets surging electricity demand driven by the global expansion of AI data centers.
HD Hyundai Heavy Industries disclosed that it will invest KRW 1.0722 trillion in building a new power-generation engine production base and a dedicated SMR manufacturing plant. The company aims to enter the power-generation market by fully leveraging its expertise in marine engine technology.
First, the company will invest KRW 833.6 billion to build a new 3-GW HiMSEN engine production base in Onsan-eup, Ulju County, Ulsan Metropolitan City. The facility will be built on a 65,000-pyeong site and will include an engine assembly and commissioning plant, a crankshaft machining plant, and an engine-block casting plant. Construction is scheduled to begin early next year, with completion targeted for May 2028.
Once the HiMSEN Engine production base becomes operational, HD Hyundai Heavy Industries will secure annual land-based power-generation engine production capacity of 4 GW, including the capacity of HD Hyundai Engine in Yeongam County. The company expects its combined production capacity for marine and land-based power-generation engines to rise from the current 3 GW to 7.2 GW.
The dedicated SMR primary-equipment plant will be built on land within HD Hyundai Heavy Industries’ Ulsan Shipyard. The company plans to complete the facility in the first half of 2029 after investing KRW 238.6 billion.
HD Hyundai Heavy Industries has already entered the U.S. power-infrastructure market for AI data centers. In April, it signed power-generation equipment supply contracts worth KRW 627.1 billion with Aperion Energy Group and KRW 956 billion with Corban Energy Group.

[email protected] Kim Yun-ho Reporter