Hanwha Group has completed the acquisition of HSD Engine, the world’s second-largest manufacturer of marine low-speed engines, and changed its name to Hanwha Engine.
On February 27, HSD Engine held an extraordinary general meeting of shareholders, during which it voted to approve the amendment of its articles of incorporation, including the change of its name to Hanwha Engine, as well as the election of new directors.
Yoo Moon-ki, former head of Hanwha Impact Investment Strategy Division, Hanwha Group’s petrochemical subsidiary, has been appointed as Hanwha Engine’s first chief executive officer. Yoo Moon-ki was previously head of Hanwha Group’s Advanced Materials Business Development Division and head of the New Business Division before moving to head Hanwha Impact Investment Strategy Division.
Hanwha Impact, which is the majority owner of Hanwha Engine, entered into an acquisition agreement in February 2023 with HSD Engine. According to the agreement, Hanwha Impact acquired 32.8% of Hanwha Engine’s shares by purchasing old shares and increasing new shares in return for compensation, with the two percentages being 19% and 14%, respectively, and the amount of the agreement was 226.9 billion won. The acquisition took a full year.
Hanwha Engine has established itself as a leader in the marine engine field based on its unrivaled technology. Hanwha Engine, which maintains second place in the global market share of low-speed engines used for propulsion of large ships, supplies low-speed marine engines to leading domestic and overseas shipyards, including Hanwha Ocean.
Following the acquisition of Hanwha Ocean in 2023, Hanwha Group is now expanding its business to include Hanwha Engine. Through this development, the group has secured a comprehensive shipbuilding solutions, covering from engine manufacturing to ship construction, utilizing its in-house production and technological capabilities. In addition, the company can expect to expand its marine equipment AM business, which involves post-purchase customer services such as sales and repair of parts.