South Korean conglomerate Hanwha Group has launched a new affiliate, Hanwha Engine, after acquiring marine engine company HSD Engine.
As explained, the company will leverage Hanwha Engine’s experience in marine engine production and the synergy among Hanwha affiliates to develop and commercialize eco-friendly fuel engines.
Specifically, it plans to actively develop and commercialize 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 firm will expand its aftermarket business, offering post-sales support such as sales and repairs of ship parts.
“The name Hanwha Engine, first and foremost, represents becoming a part of the Hanwha family but it also emphasizes having strong growth engines to propel new opportunities,” said Moon Ghee Ryu , Hanwha Engine’s new CEO and former head of Hanwha Impact’s Investment Strategy Department.
“Each of our executives and employees will provide customers with unrivaled 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.
HSD Engine became the first engine builder to commercialize a dual-fuel low-speed engine in 2013. The company also developed the world’s first low-temperature selective catalytic reduction (SCR) system, also known as the DelNOx SCR system, for ships in 2013 and commercialized it the following year. The proprietary system is an eco-friendly device that can remove more than 90% of nitrogen oxide (NOx) from the exhaust gas emitted by ship engines.
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” .
Last year, Hanwha assumed a 49.3 percent stake in Daewoo Shipbuilding & Marine Engineering (DSME) through the acquisition of over 104 million newly issued shares. DSME was rebranded as Hanwha Ocean, marking a new era for the organization.