From EPC Contractor to 'Energy Technology Company'... Hyundai Engineering Unveils Management Strategy

Hyundai Engineering has announced plans to expand its nuclear and renewable energy businesses and secure core technologies in response to the era of energy transition. The company aims to establish a sustainable growth system by building technological competitiveness beyond its existing plant-focused business structure.

On March 5, the company unveiled its management strategy for this year, which centers on playing a key role across all stages of the energy value chain. The goal is to transform from an engineering, procurement, and construction (EPC)-focused construction company to a business that provides technology at every stage of energy production, transportation, and consumption. To achieve this, the company has set four main pillars in its management strategy for the year: expanding energy businesses in nuclear power, liquefied natural gas (LNG), and renewables; securing core technologies such as small modular reactors (SMRs) and hydrogen; diversifying orders for advanced industrial architecture; and building infrastructure for electric vehicle charging (EVC).

Hyundai Engineering Headquarters, Jongno-gu, Seoul. Hyundai Engineering

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In the energy business sector, Hyundai Engineering will focus its capabilities on nuclear power, LNG, and renewables. The company demonstrated its nuclear design competitiveness by handling the initial core system design for a 20 MWh research reactor construction project at the University of Missouri in the United States.

In the LNG sector, Hyundai Engineering is entering the liquefaction plant market for the first time. It will leverage its previous experience with gas processing facilities in Uzbekistan and Turkmenistan, as well as the Al-Zour LNG import terminal in Kuwait. In July of last year, the company signed an agreement with Woodside Energy of Australia and Hyundai Glovis for the development of an LNG liquefaction project. Hyundai Engineering plans to collaborate with license holders to secure key technologies and gradually expand its business scope from small and medium to large-scale EPC projects.

The company will grow its renewables business by building on its existing track record. It is currently developing a 200 MW Hillsboro solar power plant in Oregon, USA, with the goal of commencing commercial operation by the end of 2027. This year, it also plans to build solar power plants and energy storage systems (ESS) with a total capacity of 1 GW in Serbia.

The company will also accelerate its technology development initiatives. In the SMR sector, it plans to grow into a technology-driven business operator rather than a simple construction contractor by considering joint development and strategic investment collaborations with global technology companies. In the hydrogen sector, Hyundai Engineering began construction in January of a water electrolysis-based hydrogen production plant in Boryeong, Chungcheongnam-do. The company aims to collect demonstration data on domestic water electrolysis technology at this site, standardize the system, and then expand into medium and large-scale projects.

In the industrial architecture sector, entering the data center market is seen as a new strategic move. In addition to its existing strengths in complete vehicles and batteries, the company expects the data center construction market to grow in line with the transition to artificial intelligence. After securing initial results this year, Hyundai Engineering plans to develop a differentiated data center model by integrating energy efficiency technologies. In the electric vehicle charging business, the company intends to significantly increase the number of installed chargers from about 9,000 last year to more than 32,000 this year.

Hyundai Engineering has also announced plans to declare a new value system in the second quarter of this year. By applying this across all areas of management, the company aims to improve its business structure and strengthen its corporate identity. A company representative said, "By adding technological capabilities to the global operational experience we have accumulated over the past 50 years, we will move forward as a company that plays a key role at every stage of the energy value chain."

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