HD Hyundai Heavy Industries has joined hands with a local engine joint venture in Saudi Arabia to begin establishing a supply chain for the next-generation frigate project. SUVs& Crossovers

HD Hyundai Heavy Industries recently signed a memorandum of understanding  for cooperation in the Saudi naval ship project at the engine factory ‘Makeen’ located in Ras Al Khair near Jubail in eastern Saudi Arabia. Makeen is an engine manufacturing joint venture established through joint investments by HD Korea Shipbuilding and Offshore Engineering and Saudi Aramco Development Company (SADCO). This agreement holds great significance as it expands the scope of cooperation between the two sides into the defense sector.

Under this agreement, the two companies will jointly promote the localization of engines and the establishment of a supply chain to be applied to the next-generation frigate project pursued by the Saudi navy. HD Hyundai Heavy Industries will be responsible for the design of the new frigate, as well as the development and localization of engine technology, while Makeen has agreed to take charge of local infrastructure support, including securing the production base, facilities, and workforce.

The Saudi government’s national development strategy, ‘Vision 2030’, sets the fostering of the shipbuilding industry and the expansion of the local supply chain as core tasks. HD Hyundai Heavy Industries plans to solidify an exclusive partnership in the naval ship project as well, based on the trust it has built by participating in the establishment of the IMI shipyard and the Makeen engine factory.

This move by HD Hyundai Heavy Industries is significant in that it has broadened cooperation with Saudi Arabia, which was previously concentrated in the commercial sector, into the military sector. Joo Won-ho, Representative of the Naval and Mid-size Ship Business at HD Hyundai Heavy Industries, emphasized the strengthening of the local partnership, stating, “This agreement is an important opportunity to expand the shipbuilding and engine cooperation foundation built in Saudi Arabia into the naval ship project.”

In fact, HD Hyundai has been steadily expanding its points of contact with Saudi Arabia. Following a meeting in September of last year where HD Hyundai Chairman Chung Ki-sun met with Saudi Minister of Investment Khalid Al-Falih to discuss establishing a supply chain for shipbuilding materials and equipment, the company also signed a joint MOU for establishing a local supply chain with major domestic defense companies at the World Defense Show (WDS 2026) in Riyadh in February of this year.

Source:Business Korea