On August 19, Hanwha Engine completed construction of a factory for four-stroke medium-speed engines at its headquarters in Changwon, South Gyeongsang Province. The 8,300-square-meter plant is set up for mass production.
Hanwha Engine has mainly produced low-speed engines for main propulsion in large commercial vessels. The new factory will produce four-stroke medium-speed engines for onboard power generation, expanding the company’s range to cover both propulsion and onboard power.
The new plant received support through South Korea’s reshoring subsidy program, with funding from the national government, South Gyeongsang Province and Changwon City. Hanwha Engine plans to expand its medium-speed engine business and develop hybrid propulsion and power solutions that combine engines with energy storage.
Source: Hanwha
PSR Analysis: Orders for large vessels, including LNG carriers, are supporting demand for medium-speed engines. Large ships use separate generator engines to power cargo-handling equipment, pumps, air conditioning and other onboard systems. Electrical demand is particularly high on LNG carriers, which often use several medium-speed generator engines.
Hanwha Engine can now supply low-speed main engines and medium-speed generator engines. The company can now supply a larger share of the engine package for each vessel and expand its business with Korean shipyards and shipowners.
By smoothing changes in onboard electricity demand, energy storage can help generator engines run more efficiently. Hanwha’s progress will depend on medium-speed engine orders, output at the new plant and sales of packages that combine engines with energy storage. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia
