Korean shipbuilding giant Hyundai Heavy Industries (HHI) and Saudi Aramco have inked a $ 400 mill. cooperation agreement for building engines in the Middle East.
A memorandum of understanding (MOU) was signed between the two parties and Dussur (Saudi Arabian Industrial Investment[ds_preview]s Company) to set up a joint venture for marine engine and onshore power generation engine businesses. Under the MOU, the joint venture plan to invest $ 400 million 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.
Hyundai says in a statement, it expects a wide range of revenues in the form of royalty, engine part sales and technical support services. By signing the MOU, HHI begins its first licensing businesses of the proprietary HiMSEN engines. HiMSEN engines are medium speed 4-stroke diesel engines developed in 2000. »The eco-friendly HiMSEN engines installed in containerized packaged power plants and diesel power plants have been exported to about 40 countries in Latin America, the Middle East, and Africa«, it was added.
An Hyundai official is quoted saying, »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.«
Furthermore on the basis of the JV, HHI plans to advance into the Middle East’s engine power plant market that is projected to grow worth $1.54 billion by 2026. The establishment of JV 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.
