# HD Hyundai targets 10 trillion won in annual engine sales by 2030 *A 1.07 trillion won capital filing will fund land-based generator lines and dual-fuel capacity as utilities buy decentralized power equipment.* **Published:** November 12, 2026 **By:** Hyun-jung Lee **Section:** Shipbuilding & Defense — South Korea **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/shipbuilding/hd-hyundai-targets-10-trillion-won-annual-engine-sales-1369 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Land-based HiMSEN engine capacity rises to 4 gigawatts by 2030 under a 1.07 trillion won capital expenditure program - HD Hyundai Marine Engine drew 74.2% of 2026 contract value from commercial shipbuilders in China - Groundbreaking at the Onsan facility begins in Q1 2027 with plant handover scheduled for May 2028 ![Technicians assemble and inspect large marine engines along a production floor inside an industrial manufacturing facility. (AI-generated image)](https://eastasiabrief.com/media/2026-11-12-70d42c4f7b1c.webp) *Technicians assemble and inspect large marine engines along a production floor inside an industrial manufacturing facility. (AI-generated image)* HD Hyundai Heavy Industries advanced its multi-subsidiary engine manufacturing strategy on Nov. 12, 2026, as brokerage models projected annual engine machinery sales would reach 10 trillion won ($7.2 billion) by 2030. The South Korean shipbuilder controls roughly 35% of the global market for large two-stroke marine engines. It also developed the proprietary four-stroke HiMSEN model, which equips auxiliary power rooms across global containerships and bulk fleets. A regulatory investment filing totaling 1.0722 trillion won ($772 million) forms the operational foundation of the expansion. The company committed 833.6 billion won to a specialized land-based engine facility and 238.6 billion won to a nuclear fabrication plant. The 833.6 billion won engine plant occupies a 215,000-square-meter parcel in Onsan, an industrial hub in Ulsan. The facility integrates crankshaft machining units, casting shops for engine blocks and assembly docks rated at 3 gigawatts in annual output. Total HiMSEN manufacturing capacity will increase from about 3 gigawatts in 2025 to 7.2 gigawatts by 2030. Land-based electricity generation drives the increase, expanding from 0.7 gigawatts to 4 gigawatts. Marine vessel auxiliary equipment will account for the remaining 3.2 gigawatts of output. The industrial division will dedicate its primary Ulsan yard entirely to shipboard machinery, removing utility-scale stationary engines from the waterfront docks. HD Hyundai Engine manages the secondary domestic site for land-based power units in Yeongam, South Jeolla province. The Yeongam factory will expand from an active baseline output of 0.2 gigawatts to supply 1 gigawatt of generation capacity. Severe power transmission bottlenecks and extended delivery lead times for heavy gas turbines across North America accelerated demand for mid-speed reciprocating generation units. Operators of hyperscale artificial intelligence data centers turn to reciprocating engines for continuous on-site power. American infrastructure developers committed substantial capital ahead of the factory construction schedule. Aperion Energy Group concluded a 627.1 billion won procurement contract in April 2026 to secure 684 megawatts of 20-megawatt HiMSEN generation sets. Corban Energy Group entered a subsequent 956 billion won supply agreement in August 2026 for 1,000 megawatts of 10-megawatt generators. Together, the two American transactions established a 1.5831 trillion won land-based generation order book. A plant capacity of 4 gigawatts enables HD Hyundai to manufacture approximately 150 to 200 heavy generation engines each year, depending on unit displacement. The factory can run reciprocating gas engines in modular banks to provide quick-ramping electricity. The group restructured its mechanical production into three corporate entities following the buyout of STX Heavy Industries in July 2024. That transaction created distinct manufacturing portfolios across the shipbuilding parent group. HD Hyundai Heavy Industries builds large-bore two-stroke propulsion blocks for deep-sea merchant vessels. HD Hyundai Marine Engine focuses on two-stroke propulsion machinery for feeder vessels and small bulk carriers, while HD Hyundai Engine concentrates on stationary utility systems. In-house crankshaft production from HD Hyundai Marine Engine resolved a major component constraint across the wider corporate footprint. Internal machining capacity eliminated supply bottlenecks for forged shafts and turbochargers across all three manufacturing affiliates. HD Hyundai Marine Engine maintains direct commercial ties with commercial shipbuilders located in mainland China. Chinese commercial shipyards accounted for 12 of its 15 publicized supply agreements this year, generating 499.1 billion won, or 74.2% of total contract volume. Commercial shipowners face stringent International Maritime Organization greenhouse gas thresholds and operational carbon indices. The regulatory mandate prompted HD Hyundai to adapt its HiMSEN engineering toward dual-fuel systems capable of utilizing liquefied natural gas, methanol and certified ammonia. Engine installations provide a recurring commercial funnel for HD Hyundai Marine Solution. The aftermarket subsidiary signs long-term service agreements with vessel operators and land-based plant owners, securing maintenance, repair and overhaul billings throughout a 30-year operational lifecycle. HD Hyundai Marine Solution expanded its overseas service network by completing the acquisition of American service provider Goltens for roughly $250 million. The transaction added 1,300 specialized technicians across 28 global hubs to support both maritime and stationary machinery. The parent company directed the remaining 238.6 billion won of its capital budget into nuclear manufacturing. Construction at the Ulsan yard will establish a dedicated manufacturing center for fourth-generation small modular reactor components. The nuclear workshop will fabricate reactor pressure vessels, steam generators and primary coolant pumps. HD Hyundai signed an agreement in May 2026 to supply primary modules to TerraPower for the American firm's Natrium liquid-sodium-cooled reactor design. The widely circulated 10 trillion won annual revenue estimate stems from external equity research published on Sept. 11, 2026, by Korea Investment & Securities. The forecast evaluated potential earnings if the 4-gigawatt land-based plant runs at 100% capacity utilization by 2030. Regulatory filings from HD Hyundai Heavy Industries do not establish a formal 10 trillion won corporate sales target, nor do corporate notices state that the group maintains an exclusive monopoly over dual-fuel vessel propulsion systems. Factory construction at the Onsan land-based engine facility will break ground in the first quarter of 2027, with building handover scheduled for May 2028. Handover of the nuclear equipment shop in Ulsan will follow in the first half of 2029. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | HiMSEN land-based expansion and nuclear manufacturing | HD Hyundai splits engine production across Ulsan, Onsan and Yeongam to achieve 7.2 GW capacity | Chinese shipyards account for 499.1 billion won of HD Hyundai Marine Engine order intake | Japanese propulsion licensees face tighter pricing pressure in export auxiliary tenders | North American data center operators purchase 1.68 GW of reciprocating gas generation sets | ## In this story - **Companies:** HD Hyundai Heavy Industries, HD Hyundai Marine Engine, HD Hyundai Marine Solution - **Tickers:** 329180.KS, 071970.KS, 443060.KS - **Exposed:** TerraPower, Aperion Energy Group, Corban Energy Group - **Impact:** Capex, Supply Chain, Order Book ## Primary sources 1. fnnews.com 2. daum.net 3. sentv.co.kr 4. hd.com 5. inknews.kr --- Cite as: East Asia Brief, "HD Hyundai targets 10 trillion won in annual engine sales by 2030," November 12, 2026. https://eastasiabrief.com/shipbuilding/hd-hyundai-targets-10-trillion-won-annual-engine-sales-1369