HD Hyundai Heavy Industries to invest 1 trillion KRW in power engines and SMRs

HD Hyundai Heavy Industries has announced a total investment of 1.0722 trillion KRW to expand its production capabilities for land-based power engines and Small Modular Reactors (SMR). This strategic move aims to meet the surging electricity demand driven by the expansion of AI data centers.

The company will invest 833.6 billion KRW to establish a 3GW HiMSEN engine production base in Onsan-eup, Ulsan. This facility, which includes assembly, testing, and casting plants, is scheduled to begin construction in the first quarter of next year and reach full operation by May 2028. This expansion is expected to increase total HiMSEN engine production capacity to 7.2GW by 2030.

Additionally, HD Hyundai Heavy Industries will allocate 238.6 billion KRW toward SMR technology. A dedicated factory for SMR component manufacturing will be built within the Ulsan shipyard, with a target completion date in the first half of 2029. Following the announcement, the company's stock price saw a significant increase of approximately 5% as investors reacted to the projected growth in revenue and market positioning.