Largest Investment Since Joining HD Hyundai
"Cumulative Engine Business Sales of 4.5 Trillion Won by 2035"
HD Hyundai Infracore is investing 116.8 billion KRW in Gunsan to diversify its engine business portfolio and secure new growth engines.
On the 26th, HD Hyundai Infracore announced that it signed an 'Investment Agreement (MOU) for the Construction of Engine and Battery Pack Manufacturing Facilities' with Jeonbuk Province, Gunsan City, and the Korea Industrial Complex Corporation at the Jeonbuk Provincial Government Office. Attendees at the signing ceremony included Kim Kwan-young, Governor of Jeonbuk Province; Shin Won-sik, Deputy Mayor of Gunsan City; Shin Young-dae, Member of the National Assembly; Park Jong-bae, Head of the Jeonbuk Regional Headquarters of the Korea Industrial Complex Corporation; and Oh Seung-hyun, CEO of HD Hyundai Infracore.
On the 26th, HD Hyundai Infracore signed an investment agreement for the construction of engine and battery pack manufacturing facilities at Jeonbuk Provincial Office with Jeonbuk Province, Gunsan City, and Korea Industrial Complex Corporation. From left: Congressman Shin Young-dae, Shin Won-sik, Deputy Mayor of Gunsan City, Oh Seung-hyun, President of HD Hyundai Infracore, Park Jong-bae, Head of Jeonbuk Regional Headquarters of Korea Industrial Complex Corporation, and Kim Kwan-young, Governor of Jeonbuk Province. (Photo by HD Hyundai Infracore)
HD Hyundai Infracore plans to build a defense and ultra-large power generation engine production plant and a battery packaging plant on approximately 62,700㎡ (19,000 pyeong) of land within its Gunsan site by the end of 2027, establishing mass production facilities. Jeonbuk Province, Gunsan City, and related authorities will cooperate by providing administrative support such as construction assistance and regional investment subsidies to ensure smooth factory construction.
This investment is the largest facility investment since HD Hyundai Infracore became part of HD Hyundai. After the new plant is completed, mass production of defense engines for K2 tanks, ultra-large power generation engines, and battery packs for commercial vehicles and industrial use will begin as early as the second half of 2026.
The new plant will be capable of producing 120 defense engines for tanks annually and 1,250 ultra-large power generation engines of up to 3 megawatts (MW) per year. It will also be able to produce battery packs with a capacity of 880 megawatt-hours (MWh), enough to equip approximately 3,000 electric buses. This serves as a foothold for leading the electrification market of future construction and industrial machinery.
HD Hyundai Infracore plans to respond to export orders for tank engines to Poland and T?rkiye and additional defense engine orders at this site, diversifying its product portfolio with small and medium engines produced at the existing Incheon plant and ultra-large engines produced in Gunsan.
Currently, HD Hyundai Infracore supplies battery packs to Doosan Bobcat through its Incheon plant and plans to equip battery packs in electric trucks to be launched by Tata Daewoo Commercial Vehicle.
CEO Oh Seung-hyun stated, "This decision is to diversify the profit structure of the engine business division and secure future growth engines," adding, "Cumulative sales of more than 4.5 trillion KRW are expected over the next 10 years."
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