Hyundai Heavy Industries signed an MOU with Saudi Aramco and Dussur (Saudi Arabian Industrial Investments Company) to set up a joint venture for marine engine and onshore power generation engine businesses on July 4.
Under the MOU, the joint venture will invest $400 million by 2019 to build an engine factory capable of producing about 200 engines per year upon completion at the King Salman Global Maritime Industries Complex at Ras Al-Khair, Saudi Arabia.
Hyundai Heavy Industries expects a revenue from royalties, engine part sales and technical support services. By signing the MOU, the yard begins its first licensing business of its proprietary HiMSEN engines. HiMSEN engines are medium speed 4-stroke diesel engines developed in 2000. 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.
HiMSEN engines are the world’s most selling medium speed engines with 22 percent of global medium speed marine engine markets.
The establishment of joint venture is a follow-up of a MOU for new business opportunities collaboration signed in November 2015 with Saudi Aramco.