Hanwha has officially launched its new affiliate, Hanwha Engine, after successfully acquiring HSD Engine, the world’s second-largest marine engine company in terms of market share.

Hanwha Engine will be a leading player in the marine engine industry with outstanding technological capabilities, including the expertise needed for low-speed marine engines that propel large vessels. Hanwha Engine supplies these engines to leading global shipbuilders, including Hanwha Ocean.

At an extraordinary shareholders’ meeting held on February 27, the stakeholders voted in favor of launching a new engine manufacturer under the name Hanwha Engine Co., Ltd. The company appointed Moon Ghee Ryu, former head of Hanwha Impact’s Investment Strategy Department, as its CEO.

“The name Hanwha Engine, first and foremost, represents becoming a part of the Hanwha family but it also emphasizes having strong growth engines to propel new opportunities,” said Ryu. “Each of our executives and employees will provide customers with unrivaled value, take on challenges and self-innovate for the future.”

Hanwha Impact is Hanwha Engine’s majority shareholder with a 32.8% stake in the engine manufacturer. Hanwha Impact signed a memorandum of understanding (MOU) with HSD Engine for the acquisition in February last year.

By adding Hanwha Engine to its list of affiliates following the acquisition of Hanwha Ocean last year, Hanwha is fully equipped to provide total shipbuilding solutions including engine production with in-house manufacturing and technology capabilities.

Leveraging Hanwha Engine’s experience in marine engine production and the synergy among Hanwha’s affiliates, Hanwha plans to actively develop and commercialize ships powered by eco-friendly fuels, including ammonia. Hanwha Engine is currently developing smart ship solutions for efficient ship operations and alternative fuel propulsion systems. Going forward, the company will expand its aftermarket business, offering post-sales support such as sales and repairs of ship parts.

Hanwha Engine became the first engine builder to commercialize a dual-fuel low-speed engine in 2013. The company also developed the world’s first low-temperature selective catalytic reduction (SCR) system, also known as the DelNOx SCR system, for ships in 2013 and successfully commercialized it the following year. The proprietary system is an eco-friendly device that can remove more than 90% of nitrogen oxide (NOx) from the exhaust gas emitted by ship engines.