Hyundai Heavy signs deal with Doosan Heavy to collaborate on offshore engineering business

By Park Sae-jin Posted : February 4, 2016, 15:12 Updated : February 4, 2016, 15:12

[Courtesy of Hyundai Heavy Industries]



South Korea’s Hyundai Heavy Industries (HHI) said Thursday it will collaborate with its local rival Doosan Heavy Industries & Construction (DHIC) on the localization of offshore engineering technology to enhance competitiveness.

Hyundai Heavy said in a statement the two firms have signed an MOU to develop six main items of equipment for offshore plants such as floating, production, storage and offloading (FPSO) units and tension leg platforms (TLP), by sharing engineering and construction technology and prowess in the offshore business sector.

Hyundai Heavy will apply Doosan’s flagship power technology of gas turbine generators and heat recovery steam generators (HRSG) to its offshore plants, and the two companies will jointly develop metallic materials for offshore floating structures, the statement said.

“With most of the major equipment and materials imported from abroad, our localization initiative will drive our competitiveness forward in the offshore plant business. We are also enhancing our efforts to help local partner companies localize more items under the alliance with Center for Creative Economy & Innovation In Ulsan and Gyeongnam,” said Mr. Kim Sook-hyun, COO of HHI’s Offshore & Engineering Division.

Hyundai Heavy has recently decided to temporarily shut a non-mainstream factory making offshore facilities as new orders drop sharply amid global business slump. The offshore engineering unit won $1.17 billion worth of new orders in the first 11 months of 2015, far below its yearly target of $5.3 billion, company officials said.

Alex Lee
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