HHI outlines US1.8bn smart ship plan

HHI’s investment plan will focus on developing eco-friendly and smart ships, enhancing offshore engineering capability, and establishing a ‘smart’ shipyard. Hyundai Electric & Energy Systems (HEES), Hyundai Construction Equipment (HCE) and Hyundai Robotics (HR) will invest US$640 million, US$620 million and US$90 million in technological innovation respectively. The group plans to spend 6-7% of annual sales on research and development in the long term.

Quality control has also been highlighted as a core focus. HHI is to set up a ‘lessons-learned database’, accumulating engineering failure cases. The four companies will appoint chief technology officers in charge of driving product development, drafting technology strategy, and nurturing human resources – including expanding the number of researchers in the group to 10,000 from the current 4,000.

Kwon Oh-gap, vice chairman and CEO, HHI Group, said: “As today marks new chapter in our history, the three newly established companies will make utmost efforts to rank the global top five in their respective fields by making quality and technology top priorities.”