Hanwha launches affiliate Hanwha Engine following HSD Engine acquisition

South Korean conglomerate Hanwha on Wednesday (6 March) said it has officially launched its new affiliate, Hanwha Engine, after successfully acquiring HSD Engine, the world’s second-largest marine engine company in terms of market share.

The firm said Hanwha Engine will be a player in the marine engine industry with technological capabilities, including the expertise needed for low-speed marine engines that propel large vessels.

“Hanwha Engine supplies these engines to leading global shipbuilders, including Hanwha Ocean,” it said on its website. 

At an extraordinary shareholders’ meeting held on 27 February, the stakeholders voted in favour of launching a new engine manufacturer under the name Hanwha Engine Co., Ltd. The company appointed Moon Ghee Ryu, former head of Hanwha Impact’s Investment Strategy Department, as its CEO.

“The name Hanwha Engine, first and foremost, represents becoming a part of the Hanwha family but it also emphasises having strong growth engines to propel new opportunities,” said Ryu. 

“Each of our executives and employees will provide customers with unrivalled value, take on challenges and self-innovate for the future.”

Hanwha Impact is Hanwha Engine’s majority shareholder with a 32.8% stake in the engine manufacturer. Hanwha Impact signed a memorandum of understanding (MOU) with HSD Engine for the acquisition in February last year.

By adding Hanwha Engine to its list of affiliates following the acquisition of Hanwha Ocean last year, Hanwha is fully equipped to provide total shipbuilding solutions including engine production with in-house manufacturing and technology capabilities.

Leveraging Hanwha Engine’s experience in marine engine production and the synergy among Hanwha’s affiliates, Hanwha plans to actively develop and commercialise ships powered by eco-friendly fuels, including ammonia. 

Hanwha Engine is currently developing smart ship solutions for efficient ship operations and alternative fuel propulsion systems. Going forward, the company will expand its aftermarket business, offering post-sales support such as sales and repairs of ship parts.

Photo credit: Hanwha
Published: 8 March 2024