South Korean shipbuilder HD Hyundai Heavy Industries will invest KRW 1.072tn ($798.5m) in power-engine and small modular reactor manufacturing facilities in Ulsan to target rising electricity demand from artificial intelligence data centres, according to a company statement.
The board-approved investment will direct KRW 833.6bn ($621.0m) to a new plant producing gas-powered HiMSEN engines for electricity generation.
Construction is expected to start in the first quarter of 2027, with operations scheduled to begin in May 2028.
A further KRW 238.6bn ($177.7m) will be invested in production facilities for key SMR components within the company’s existing Ulsan shipyard. Completion is expected in the first half of 2029.
HD Hyundai Heavy Industries said the investment is intended to strengthen its position in power-generation engines and SMRs as electricity demand rises with the expansion of AI data centres.
HD Hyundai Heavy Industries Co., Ltd. was established as a separate legal entity through a corporate split on 1 June 2019. Its businesses include shipbuilding, offshore and engineering, and engine and machinery operations.