HD Construction Equipment Co., Ltd. Scores a String of North American Engine Orders, Signs 160 Billion Won Supply Deal

[Financial News] HD Construction Equipment Co., Ltd. has won a contract in North America to supply power-generation engines worth 160 billion won. It follows a major engine order secured last month. The company plans to increase production capacity at its new Gunsan engine plant and step up efforts to meet power demand driven by artificial intelligence (AI) data centers.
HD Construction Equipment Co., Ltd. said on the 10th that it had signed a contract with North American power generation and engine solutions company Power Solutions International (PSI) to supply 22-liter-class gas-engine long blocks for power generation. The contract is worth approximately 160 billion won, with deliveries scheduled over two years, from 2027 through 2028.
A long block is a semi-finished engine body that excludes systems such as the fuel and ignition systems. The customer combines it with equipment and systems suited to its needs to complete a power-generation engine. PSI plans to use HD Construction Equipment Co., Ltd.'s long blocks to supply customized power-generation systems for data centers and industrial infrastructure sites.
Last month, HD Construction Equipment Co., Ltd. also signed a contract worth approximately 390 billion won with ERock, a U.S. power infrastructure solutions company, to supply gas-engine long blocks for power generation. Including the PSI contract, the supply contracts the company has secured in North America in roughly a month total approximately 550 billion won.
The back-to-back orders have been driven by rising demand for on-site power generation as AI data centers proliferate. Demand is growing for power to be generated directly at data center sites because expansion of the power grid has not kept pace with the speed of data center construction. HD Construction Equipment Co., Ltd.'s strategy is to pursue the market by highlighting the short delivery times and quick installation of its power-generation engines, as well as the flexibility to expand facilities in line with power demand.
The company is also investing in production facilities while expanding its product lineup. On the 28th of last month, HD Construction Equipment Co., Ltd. completed a new engine plant at its Gunsan Campus in Jeonbuk State. Built on a site of approximately 62,700 square meters with an investment of 116.8 billion won, the plant can produce 1,250 ultra-large power-generation engines rated at 1–3 MWe annually. It also has production facilities for defense engines for tanks and battery packs.
The new Gunsan plant is scheduled to begin mass-producing power-generation engines in stages, starting with a 37-liter-class product in the first half of next year, followed by 77-liter-class engines in 2028 and 50-liter-class engines in 2029. This will broaden the product lineup beyond the existing supply of 22-liter-class gas-engine long blocks to include higher-output power-generation engines. The company aims to expand its power-generation and defense engine and battery-pack businesses and achieve engine business revenue of 2.5 trillion won by 2030.
An HD Construction Equipment Co., Ltd. official said, “The successive large-scale supply contracts have once again demonstrated the technological capabilities and reliability of our engines,” adding, “We will continue to expand our business by actively pursuing the rapidly growing power infrastructure market.” 
[email protected] Jung Won-il Reporter