Hyundai Heavy in first HiMSEN engine licensing deal

L to R: Rasheed Al-Shubaili, CEO of Dussur; Ziad Murshed, Executive Director of New Business Development of Saudi Aramco; and Chang Ki-don, COO of HHI's Engine & Machinery Division L to R: Rasheed Al-Shubaili, CEO of Dussur; Ziad Murshed, Executive Director of New Business Development of Saudi Aramco; and Chang Ki-don, COO of HHI's Engine & Machinery Division

JULY 5, 2017 — Hyundai Heavy Industries (HHI), the world's largest shipbuilder, has signed a memorandum of understanding (MOU) with Saudi Aramco and Dussur (Saudi Arabian Industrial Investments Company) to set up a joint venture to set up marine engine and onshore power generation engine businesses.

HHI expects a wide range of revenues in the form of royalties, engine part sales and technical support services.

In signing the MOU, HHI begins its first licensing businesses of the proprietary HiMSEN engines. HiMSEN engines are medium speed four-stroke diesel engines developed in 2000 with 10 years of R&D investment. 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. HHI says that HiMSEN engines are the world's top selling medium speed engines with 22% of global medium speed marine engine markets.

The joint venture plans to invest $400 million by 2019 to build an engine factory, capable of producing about 200 engines per year, at the King Salman Global Maritime Industries Complex at Ras Al-Khair, Saudi Arabia.

The signing ceremony of the MOU was attended by Chang Ki-don, COO of HHI's Engine & Machinery Division; Ziad Murshed, Executive Director of New Business Development of Saudi Aramco; and Rasheed Al-Shubaili, CEO of Dussur.

 

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