[Exclusive] HD Hyundai Electric Establishes President-Direct Electrification Core Components Division

HD Hyundai Electric has recently confirmed that it transferred its rotating machinery business, a core component of electrification, directly under the president through an organizational restructuring. Rotating machinery refers to both 'motors' that convert electrical energy into mechanical energy and 'generators' that operate in the opposite way. Since electrification, which generates power through electricity, is central to carbon neutrality, this move is interpreted as the president's intention to personally oversee the related key components.

According to industry sources on the 17th, HD Hyundai Electric recently carried out an organizational restructuring that separated the rotating machinery business, previously under the Power Business Division, into an independent division. The head of the rotating machinery division will be Executive Director An Jae-han, who previously oversaw power design and production.

A company official stated, "We streamlined the decision-making process to focus solely on the rotating machinery business," adding, "We aim to make rotating machinery, a core component of electrification, a future growth engine and nurture it in earnest."

Jo Seok, President of HD Hyundai Electric. Photo by HD Hyundai Electric

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Rotating machinery accounts for about 20% of HD Hyundai Electric's total sales. While its share in the business is not small, it is significantly different from the main transformer business.

However, with the global carbon neutrality trend accelerating electrification, rotating machinery is gaining attention as a key component. This is because rotating machinery such as generators is essential for producing and supplying electricity.

Rotating machinery is especially useful for eco-friendly ships. It plays a role in producing (motor) and supplying (generator) electricity within ships by combining with engines, and orders for electric propulsion ships are increasing due to the International Maritime Organization (IMO) tightening environmental regulations.

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In 2021, HD Hyundai Electric succeeded in developing the country's first 'engine-integrated shaft generator' that converts surplus engine rotation into electrical energy. As of the third quarter of last year, the order backlog for rotating machinery stood at 450 billion KRW, already surpassing the previous year's 362.3 billion KRW.

HD Hyundai Electric expects the demand for rotating machinery to grow further due to large orders from Qatar, expanding demand for eco-friendly ships, and the activation of carbon capture and storage (CCS).

Cho Seok, president of HD Hyundai Electric, said, "Now, when the power equipment market is favorable, is the right time to prepare for the future," adding, "We will establish a balanced business portfolio."

HD Hyundai Electric Rotating Machine Factory Exterior. Photo by HD Hyundai Electric

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