Hanwha Engine Officially Launches on 28th... Kim Dong-kwan's 'Decarbonization' Efforts Gain Momentum

Hanwha Group will complete the acquisition of HSD Engine, the world's second-largest ship engine manufacturer, by the end of this month and officially launch 'Hanwha Engine.' This comes one year after signing a memorandum of understanding (MOU) for the acquisition in February last year. It is evaluated that the group has laid the foundation to promote low-carbon and eco-friendly energy businesses together with Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean), acquired in May last year.

According to Hanwha Group on the 23rd, Hanwha Engine will hold an official launch ceremony at its headquarters in Changwon, Gyeongnam, on the 28th, where it will announce its business vision centered on eco-friendly ship engines. At the launch ceremony, new management personnel from Hanwha will attend to greet employees and receive business reports.

Among those appointed as inside directors are Yoo Moon-ki, head of Hanwha Impact IMO (Integrated Management Office), Kim Hong-gi and Kang Min-wook, executives in charge under IMO, and Lim Sung-bin, head of Hanwha Impact Management Support Office. It is expected that the new head of Hanwha Engine will emerge from among them.

Prior to the launch ceremony, on the 27th, HSD Engine will hold an extraordinary general meeting of shareholders to address agenda items such as company name change, director appointments, and amendments to the articles of incorporation. When Hanwha Impact pays the remaining acquisition funds on that day, it will secure a 32.77% stake and become the largest shareholder. The two companies signed an acquisition MOU in February last year and have been proceeding with related procedures.

Kim Dong-kwan, Vice Chairman of Hanwha Group [Photo by Hanwha Group]

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The group expects to gain momentum in developing eco-friendly ships. Hanwha Engine has commercialized the world's largest electronic control ship engines and eco-friendly dual-fuel low-speed engines that can use both liquefied natural gas (LNG) and heavy oil.

A company official said, "The synergy effect of developing eco-friendly ship technology will increase further through the shipbuilding and engine affiliates," adding, "Collaboration will also be possible with other affiliates such as Hanwha Power Systems, which manufactures gas turbines, and Hanwha Aerospace, which produces fuel cells." Hanwha is developing gas turbines that operate on 100% ammonia.

Hanwha Group's eco-friendly business is also expected to benefit from the driving force of Vice Chairman Kim Dong-kwan. Vice Chairman Kim oversees new businesses within the group, including eco-friendly energy, decarbonization, and space.

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Vice Chairman Kim recently attracted attention by unveiling Hanwha Group's decarbonization vision at a global event. Last month, at the World Economic Forum (WEF, Davos Forum) session titled 'World's First Fossil Fuel-Free Ship,' he stated, "We will introduce an eco-friendly ship that emits zero carbon within 2 to 3 years," adding, "The ammonia gas turbine being developed by Hanwha is a zero-carbon technology that can operate solely on 100% ammonia."

Shortly after, Hanwha Ocean announced that it is "considering establishing an eco-friendly shipping company," officially signaling its entry into the shipping industry. The market is also mentioning it as a candidate to acquire HMM.

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