HD Hyundai Heavy Industries Plans Major Investment in Future Engine and SMR Production Facilities
HD Hyundai Heavy Industries, a leading player in the engineering sector, has unveiled an ambitious investment plan aimed at enhancing its production capabilities in the power generation sector. On September 10, 2026, the company announced it would allocate a total of KRW 1.0722 trillion towards the development of new facilities for power generation engines and small modular reactors (SMRs). This strategic investment marks a significant step towards solidifying its position in the growing global energy market.
To kick off this intensive investment program, HD Hyundai will channel KRW 833.6 billion into building a cutting-edge 3-gigawatt production facility for its HiMSEN engines located in Onsan-eup, Ulju-gun, Ulsan. The new facility is set to cover around 215,000 square meters and will include state-of-the-art assembly, testing, crankshaft machining, and engine block casting capabilities. Projected construction is slated to commence in the first quarter of next year, with completion targeted for May 2028. This move is expected to significantly increase HD Hyundai's annual production capability to an impressive 4 GW of land-based power generation engines.
The company's plans include optimizing production efficiency through a dual facility structure, wherein its existing main facility in Ulsan will focus on marine applications for the HiMSEN engines. Meanwhile, the newly built facility will exclusively target land-based applications, facilitating enhanced production capacity from the current 3 GW to a total of 7.2 GW by 2030. This transition aligns with the growing demand for reliable power sources, particularly from AI data centers that require uninterrupted electricity supply.
In addition to engines, HD Hyundai is allocating KRW 238.6 billion for the establishment of a dedicated production line for key SMR equipment. The facility is set to be constructed on the grounds of the Ulsan shipyard, with completion anticipated in the first half of 2029. SMRs represent a revolutionary approach to nuclear energy, generating less power than conventional reactors while using modularized components. This technology is increasingly favored for its potential to ensure stable electricity supplies and reduce carbon emissions—an essential aspect amid current environmental concerns.
The global market for SMRs is projected by the Organisation for Economic Co-operation and Development (OECD) to expand significantly, reaching around 150 GW by 2050. Yet, key components required for SMR production are still limited, presenting an opportunity for companies like HD Hyundai to capture considerable market share.
An official from HD Hyundai emphasized that this investment is crucial for establishing and maintaining the company's competitive edge in both power generation engines and SMRs, especially as the demand for electricity continues to rise in the age of artificial intelligence. The firm reiterated its commitment to meeting the needs of the market and leading in AI infrastructure by proactively responding to these trends.
Earlier this year, HD Hyundai made strides in the U.S. data center infrastructure market, securing supply contracts valued at over KRW 1.5 trillion with prominent partners, further strengthening its presence in the international energy landscape.
This extensive investment plan reflects HD Hyundai's vision for a sustainable future in energy production, positioning itself as a pioneer in the transition to advanced power solutions.
New Production Facilities
To kick off this intensive investment program, HD Hyundai will channel KRW 833.6 billion into building a cutting-edge 3-gigawatt production facility for its HiMSEN engines located in Onsan-eup, Ulju-gun, Ulsan. The new facility is set to cover around 215,000 square meters and will include state-of-the-art assembly, testing, crankshaft machining, and engine block casting capabilities. Projected construction is slated to commence in the first quarter of next year, with completion targeted for May 2028. This move is expected to significantly increase HD Hyundai's annual production capability to an impressive 4 GW of land-based power generation engines.
A Dual-Facility Structure
The company's plans include optimizing production efficiency through a dual facility structure, wherein its existing main facility in Ulsan will focus on marine applications for the HiMSEN engines. Meanwhile, the newly built facility will exclusively target land-based applications, facilitating enhanced production capacity from the current 3 GW to a total of 7.2 GW by 2030. This transition aligns with the growing demand for reliable power sources, particularly from AI data centers that require uninterrupted electricity supply.
Investing in SMR Technology
In addition to engines, HD Hyundai is allocating KRW 238.6 billion for the establishment of a dedicated production line for key SMR equipment. The facility is set to be constructed on the grounds of the Ulsan shipyard, with completion anticipated in the first half of 2029. SMRs represent a revolutionary approach to nuclear energy, generating less power than conventional reactors while using modularized components. This technology is increasingly favored for its potential to ensure stable electricity supplies and reduce carbon emissions—an essential aspect amid current environmental concerns.
A Promising Future for SMR Market
The global market for SMRs is projected by the Organisation for Economic Co-operation and Development (OECD) to expand significantly, reaching around 150 GW by 2050. Yet, key components required for SMR production are still limited, presenting an opportunity for companies like HD Hyundai to capture considerable market share.
Commitment to Innovation
An official from HD Hyundai emphasized that this investment is crucial for establishing and maintaining the company's competitive edge in both power generation engines and SMRs, especially as the demand for electricity continues to rise in the age of artificial intelligence. The firm reiterated its commitment to meeting the needs of the market and leading in AI infrastructure by proactively responding to these trends.
Earlier this year, HD Hyundai made strides in the U.S. data center infrastructure market, securing supply contracts valued at over KRW 1.5 trillion with prominent partners, further strengthening its presence in the international energy landscape.
This extensive investment plan reflects HD Hyundai's vision for a sustainable future in energy production, positioning itself as a pioneer in the transition to advanced power solutions.
Topics Energy）
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