The South Korean shipbuilding group Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering (DSME), has launched a new marine engine brand focusing on ammonia engines.
With the establishment of Hanwha Engine, the Group says it is now in a position to offer “complete shipbuilding solutions, including engine production with its own manufacturing and technology capabilities”. The new subsidiary was founded following the acquisition of HSD Engine, which the company claims to be the world’s second-largest manufacturer of low-speed marine propulsion engines. [ds_preview]
The aim is to use KSD Engine’s experience in the production of marine engines and the synergies between the Hanwha subsidiaries to develop and market engines for environmentally friendly fuels.
The South Korean parent company now plans to “actively develop and market ships that run on environmentally friendly fuels, including ammonia”. Propulsion systems for alternative fuels are already under development. In the future, the new engine division intends to expand its aftermarket business and offer customer services such as selling and repairing ship parts.
At an extraordinary shareholders’ meeting on 27 February, shareholders voted to establish a new engine manufacturer under the name of Hanwha Engine Co., Ltd. Moon Ghee Ryu, former head of the investment strategy department of Hanwha Impact, the majority shareholder of Hanwha Engine, will serve as CEO.
The South Korean Hanwha Group, the seventh largest conglomerate in South Korea and active in the defence, energy, chemicals, retail and finance sectors with over 90 companies, had taken over the ailing shipbuilding company Daewoo Shipbuilding & Marine Engineering (DSME) at the end of 2022 after a previously planned takeover by Hyundai Heavy Industries failed due to the rejection of the EU competition authorities. With the takeover of HSD Engine, the Group is also securing its position against domestic rival KSOE, which in turn has taken over engine manufacturer STX Heavy Industries.
