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HHI inks engine factory joint venture in Saudi ArabiaHHI inks engine factory joint venture in Saudi Arabia

Hyundai Heavy Industries (HHI) has signed a memorandum of understanding (MOU) with Saudi Aramco and Dussur (Saudi Arabian Industrial Investments Company) to establishe a joint venture for marine engine and onshore power generation engine businesses.

Lee Hong Liang, Asia Correspondent

July 6, 2017

1 Min Read
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Under the MOU, the joint venture will invest $400m by 2019 to build an engine factory capable of producing about 200 engines per year upon completion at the King Salman Global Maritime Industries Complex at Ras Al-Khair, Saudi Arabia.

From the joint venture business, HHI expects a wide range of revenues in the form of royalty, engine part sales and technical support services.

HHI will start its first licensing businesses of the proprietary HiMSEN engines, which are medium speed four-stroke diesel engines developed in 2000 with 10 years of R&D investment.

HHI claims that HiMSEN engines are the world’s most selling medium speed engines with 22% of global medium speed marine engine markets.

An HHI official said: “The technology of building quality marine engines is crucial in shipbuilding, power generation and other industrial sectors. As we embarked on our HiMSEN engine’s first licensing business with the establishment of the joint venture, we will accelerate our efforts to expand the business further as our new growth engine.”

On the back of the joint venture, HHI plans to advance into the Middle East’s engine power plant market that is projected to worth $1.54bn by 2026.

The establishment of joint venture is a follow-up of the MOU for New Business Opportunities Collaboration signed in November 2015 with Saudi Aramco for businesses including the maritime yard, marine engine and industrial plant.

Read more about:

Saudi ArabiaSaudi Aramco

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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