Hyundai Heavy Industries Group to Invest 21 Trillion Won Over 5 Years, Leading Green and Digital Transformation

Strengthening Business Competitiveness with 12 Trillion KRW
8 Trillion KRW Investment in Eco-Friendly and Digital Transformation
1 Trillion KRW Investment in Pharmaceutical Bio Sector

Establishing Smart Yards
Eco-Friendly Ships and Carbon Neutrality
Leading Hydrogen Hybrid Energy Sector

Promoting Digital Innovation such as Autonomous Ships and Industrial Big Data
Gathering Technical Talent Centered at Pangyo GRC
Planning to Hire Over 10,000 People in 5 Years

[Asia Economy Reporter Jeong Dong-hoon] Hyundai Heavy Industries Group is making a large-scale investment for an eco-friendly and digital transformation.

On the 26th, Hyundai Heavy Industries Group announced that it will invest a total of 21 trillion KRW over the next five years in eco-friendly transition and digital transformation, which are identified as the fields responsible for the group's future.

To build the core foundation that will support the group's next 50 years and strengthen the competitiveness of its core businesses, it will invest 12 trillion KRW in establishing smart shipyards that can improve production efficiency and quality, building smart construction machinery infrastructure focused on automation and unmanned technology development in the construction sector, and investing in smart energy businesses.

A total of 7 trillion KRW will be invested in eco-friendly research and development (R&D). In the shipbuilding sector, the plan is to build a hydrogen transport value chain including eco-friendly ship equipment, carbon capture technology, and hydrogen/ammonia propulsion ships. In the construction machinery sector, the focus will be on developing battery-based machinery equipment, and in the energy business sector, on carbon reduction technology and eco-friendly bio-technology development.

The sea trial of the large LNG-powered container ship, the world's first built by Hyundai Heavy Industries Group [Image source=Yonhap News]

Specifically, R&D will be accelerated in future eco-friendly markets such as offshore floating bodies, fuel cells, water electrolysis, and hydrogen hybrid energy charging stations, as well as in solar power and renewable energy development, carbon capture utilization and storage (CCUS) business, and biofuel and eco-friendly material businesses.

A total of 1 trillion KRW will be invested in the digital sector, including leading autonomous ships and maximizing synergy through big data platforms. The goal is to focus investment on next-generation product development through unmanned and AI (artificial intelligence) integration in construction machinery and robotics. Additionally, 1 trillion KRW will be invested to actively enter the pharmaceutical and bio sectors, including M&A of innovative companies in the industry and equity investments in promising sectors.

Furthermore, the group will actively recruit core talents responsible for its future. Over the next five years, it plans to hire a total of 10,000 people, including about 5,000 R&D personnel, and focus technological capabilities around the Global R&D Center (GRC) being built in Pangyo, Gyeonggi Province.

A Hyundai Heavy Industries Group official stated, "The eco-friendly and digital transformation is a core goal for the group's future," adding, "We plan to concentrate all capabilities on nurturing core talents and technology development."

Meanwhile, in April, Hyundai Heavy Industries Group conducted a comprehensive review of its management strategy at an emergency executive meeting chaired by Chairman Kwon Oh-gap to proactively respond to an uncertain management environment.