South Korean shipbuilding major HD Hyundai has announced investments totalling more than US$800 million directed at two distinct manufacturing initiatives — an expanded onshore production facility for high-power generation engines and a dedicated small modular reactor (SMR) manufacturing plant.
A Dual Investment Strategy Targeting Energy Infrastructure
According to official stock exchange filings dated 10 September, approximately US$623 million has been earmarked for land acquisition, the construction of a new manufacturing facility, and the installation of production equipment. The primary objective is to expand production capacity for high-power generation engines. The facility is scheduled for completion in May 2028.
HD Hyundai stated that the investment is designed to respond to the expansion of the engine-based power generation market, driven by rising global electricity demand.
South Korean media reported that the shipbuilder plans to establish a production base for its HiMSEN engines in Onsan-eup, Ulju-gun, Ulsan, with an annual production capacity of 3 gigawatts (GW).
HiMSEN is a four-stroke engine developed by HD Hyundai. It features a lightweight, high-power, and high-efficiency design, with a broad range of models capable of operating on diesel and natural gas. HD Hyundai plans to increase its total HiMSEN engine production capacity from the current 3 GW per year to 7.2 GW by 2030.
Dedicated SMR Manufacturing Facility in the Pipeline
Separately, around US$178 million will be invested in the construction of a dedicated SMR manufacturing facility, supporting HD Hyundai’s entry into the major equipment manufacturing business for small modular reactors. Construction of this facility is expected to be completed by April 2029.
The Chosun Daily reported that the project is aimed at meeting surging electricity demand driven by the proliferation of AI data centres, which require stable and uninterrupted power supplies. Small modular reactors have emerged as a promising next-generation energy source in this context.
HD Hyundai has highlighted that it is accelerating its investment in SMR technology development, “positioning the company at the forefront of next-generation clean energy innovation.”
A Growing Partnership with TerraPower
HD Hyundai’s engagement in the small modular reactor space has been building steadily over recent years. In November 2022, the company invested US$30 million in TerraPower, a leading US-based SMR company founded by Microsoft co-founder Bill Gates.
In March 2025, HD Hyundai signed an agreement with TerraPower to expand the manufacturing supply chain for the commercialisation of Natrium reactors. Further reinforcing this relationship, the shipbuilder was named the preferred bidder to manufacture and supply key equipment for TerraPower’s Natrium reactors last May.
The HD Hyundai SMR initiative, backed by this multi-hundred-million-dollar commitment and its deepening collaboration with TerraPower, reflects the company’s clear intention to position itself as a substantial player in the global clean energy manufacturing landscape.