116.8 billion won investment

New plant to produce 1,250 large-scale power generation engines annually

Engine business targets 2.5 trillion won in sales by 2030

An aerial view of HD Construction Equipment's new engine factory at its Gunsan campus. [HD Construction Equipment]
An aerial view of HD Construction Equipment's new engine factory at its Gunsan campus. [HD Construction Equipment]

HD Construction Equipment held a completion ceremony Wednesday for its new engine factory at its Gunsan campus in North Jeolla Province.

The event drew about 200 attendees, including HD Hyundai Vice Chairman Jo Young-cheol, HD Construction Equipment President Moon Jae-young, North Jeolla Province Governor Lee Won-taek, National Assembly member Kim Eui-gyeom, Gunsan Mayor Kim Jae-jun and Ministry of Trade, Industry and Energy Director of Industrial AI Policy Park Tae-hyeon, along with partner companies and customers.

The new factory was built over two years on a 62,700-square-meter site within the Gunsan campus, with an investment of 116.8 billion won ($88.2 million). The facility incorporates assembly robots, autonomous mobile robots, pre-production defect detection equipment and an integrated control tower to improve quality and production efficiency.

The factory can produce 120 defense engines for tanks annually and up to 1,250 large-scale power generation engines in the 1–3 MWe range per year. It also has an annual battery pack production capacity of up to 1,460 MWh — enough to power roughly 9,400 electric buses.

The DX37 power generation engine, set for mass production at HD Construction Equipment's new Gunsan factory. [HD Construction Equipment]
The DX37 power generation engine, set for mass production at HD Construction Equipment's new Gunsan factory. [HD Construction Equipment]

HD Construction Equipment signed a contract earlier this month to supply gas power generation engine long blocks — the core engine body — for data centers in the United States. To secure additional orders from AI data centers, the company plans to begin mass production at Gunsan starting with a 37-liter (1.3 MWe) model in the first half of next year, followed by a 77-liter (3 MWe) model in 2028 and a 50-liter (2 MWe) model in 2029. The new factory will also allow the company to steadily meet growing medium- and long-term demand for tank defense engines and to expand battery pack supply for commercial vehicles, construction equipment and industrial applications.

The ceremony also saw the unveiling of the DX37, a 37-liter large-scale power generation engine, along with a new name and slogan for the company's engine business division. HD Construction Equipment named the division the Power Solutions Business Division, reflecting its mission to provide the driving force behind industry through engines and battery packs. The new slogan, "Powering the Next," expresses the company's commitment to realizing future technologies and creating new opportunities.

HD Construction Equipment aims to generate 2.5 trillion won in sales from its engine business alone by 2030 — nearly double last year's 1.3 trillion won.

"We will realize future technologies in response to new energy demands and proactively create new business opportunities," President Moon said at the ceremony. "Through this, we will become a company that grows together with the local community."


yeongdai@heraldcorp.com